Item 1. Reports to Stockholders
Optimum Fixed Income Fund
Optimum International Fund
Optimum Large Cap Growth Fund
Optimum Large Cap Value Fund
OptimumSmall-Mid Cap Growth Fund
OptimumSmall-Mid Cap Value Fund
March 31, 2019
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectus and, if available, their summary prospectuses, which may be obtained by visiting optimummutualfunds.com/literature or calling 800914-0278. Investors should read the prospectus and, if available, the summary prospectus carefully before investing.
Table of contents
Other than Macquarie Bank Limited (MBL), none of the entities noted are authorized deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities, unless noted otherwise. The Funds are governed by US laws and regulations.
Unless otherwise noted, views expressed herein are current as of March 31, 2019, and subject to change for events occurring after such a date.
The Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.
Macquarie Investment Management (MIM) is the marketing name for certain companies comprising the asset management division of Macquarie Group. Investment products and advisory services are distributed and offered by and referred through affiliates which includeDelaware Distributors, L.P. (DDLP), a registered broker/dealer and member of FINRA; and Macquarie Investment Management Business Trust (MIMBT) and Delaware Capital Management Advisers, Inc., each of which areSEC-registered investment advisors. Investment advisory services are provided by the series of MIMBT. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.
All third-party marks cited are the property of their respective owners.
© 2019 Macquarie Management Holdings, Inc.
Portfolio management reviews
Optimum Fixed Income Fund
April 9, 2019 (Unaudited)
| | | | |
Performance review (for the year ended March 31, 2019) | | | | |
Optimum Fixed Income Fund (Institutional Class shares) | | 1-year return | | +3.65% |
Optimum Fixed Income Fund (Class A shares) | | 1-year return | | +3.37% |
Bloomberg Barclays US Aggregate Index (benchmark) | | 1-year return | | +4.48% |
Past performance does not guarantee future results.
For complete, annualized performance for Optimum Fixed Income Fund, please see the table on page 20.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Advisor
Delaware Management Company (DMC)
Sub-advisor
Pacific Investment Management Company LLC (PIMCO)
Market overview
During the first three months of the Fund’s fiscal year ended March 31, 2019, the US dollar rallied while geopolitical and trade tensions weighed on risk sentiment. Developed market equities ended the second calendar quarter of 2018 higher even as credit spreads widened. Divergent growth momentum and central bank activity between the United States and other developed regions supported the US dollar, leading to weakness in emerging market assets. In June, the US Federal Reserve hiked its policy rate and signaled two more increases in 2018, while softer economic data elsewhere prompted a more cautious approach from central banks including the Bank of England (BOE) and the European Central Bank (ECB).
Risk assets remained resilient as developed market yields shifted higher in the third quarter of 2018. Despite lingeringUS-China tensions and challenges in emerging market assets, a strong fundamental backdrop persisted and contributed to relatively strong performance from US risk assets: US equities rallied, corporate credit spreads tightened, and the dollar strengthened. Meanwhile, central banks remained on course for diminished monetary support, which pushed developed market yields higher. During the third quarter, the Fed and BOE both raised their key interest rates, the ECB confirmed plans to cease asset purchases byyear-end, and the Bank of Japan (BOJ) adjusted its yield curve control.
Risk sentiment waned late in 2018 as developed market yields fell. Most risk assets had challenging performance in the fourth quarter as volatility rose. Concerns about slowing growth amid other sources of uncertainty led to a selloff in global equity markets while credit spreads widened and developed market yields fell. In December, the
Fed hiked its policy rate for the fourth time in 2018, while lowering its expectations for rate increases in 2019.
Markets rebounded to begin 2019 and sustained their recovery from December’s selloff. Global central banks signaled more accommodative stances as economic data indicated slowing growth. Optimism overUS-China trade talks helped bolster market sentiment, while other developments were more mixed. In Britain, the threat of ano-deal Brexit seemed to recede. Elsewhere in Europe, the European Commission warned of deteriorating debt dynamics in Italy, Spain, and Greece.
Source: Bloomberg.
Fund performance
For the fiscal year ended March 31, 2019, Optimum Fixed Income Fund underperformed its benchmark index, the Bloomberg Barclays US Aggregate Index, with mixed results from different component parts of the Fund, managed by DMC and PIMCO, covering intermediate-term, floating-rate securities, and low duration bonds. The following remarks describe factors that affected relative performance within the Fund’s respective portions.
DMC
Note: The portfolio-level discussion presented below appears in two sections. The first covers DMC’s multisector, intermediate-term portion of the Fund, while the second covers its short duration, floating-rate strategy.
Intermediate-term component
For the fiscal year ended March 31, 2019, DMC’s fixed-rate intermediate-term portion of Optimum Fixed Income Fund returned +3.64% (before expenses), underperforming the Fund’s benchmark, the Bloomberg Barclays US Aggregate Index, which returned +4.48% for the fiscal year. (All return references below are before expenses.)
Bank loan exposure in DMC’s intermediate-term portion of the Fund averaged 8% during the fiscal year, with below-benchmark
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Optimum Fixed Income Fund
performance. This was driven in part by a meaningful selloff during the fourth quarter of 2018 and the floating-rate nature of the asset class. Performance rebounded somewhat in early 2019; however, with the Fed tilting to a more dovish stance, the asset class lagged other higher-beta (higher-risk) opportunities.
Emerging markets struggled for most of the fiscal year, resulting in losses. A continuation of Fed hikes for the whole of 2018 supported a strong US dollar. Additionally, the increase in US rates going into the back half of 2018 provided an additional headwind for emerging markets. Within this portion of the Fund, exposure to Argentine, Turkish, and Ukrainian government bonds detracted from performance. Holdings inDigicel Group, a wireless provider, also experienced losses as fundamentals weighed on its outlook. Solid performance within the metals and mining sector includingCSN Resources S.A.andFirst Quantum Minerals Ltd.helped cushion against losses.
The largest detractor from performance in DMC’s intermediate-term portion of the Fund was a significant underweight to mortgage-backed securities (MBS). This was compounded by poor security selection withinto-be-announced (TBA) pools and anout-of-benchmark exposure to collateralized mortgage obligations (CMOs). The returns in both agency fixed-rate MBS and CMO structures were quite negative and were a large drag on performance in DMC’s intermediate-term component of the Fund. Total mortgage-backed exposure of roughly 15% during the Fund’s fiscal year generated a negative return and detracted meaningfully from performance.
DMC used a barbell strategy of long sequential CMOs and inverse interest-only (IO) securities for long-maturity exposure, which was offset by investments in straight IO, representing short-maturity exposure. (A barbell strategy is a fixed-income strategy in which the maturities and/or durations of included securities are concentrated at two extremes.) This barbell was a higher yield proxy for straight current coupon mortgage-backed agency pass-through investments. As the market encountered more volatility in the second half of 2018, this barbell succumbed to price declines and yield premium events. DMC reduced MBS exposure in this portion of the Fund during the second half of 2018 and continued to reduce its CMO allocation during the first quarter of 2019.
Another detractor came from a meaningful underweight to high-quality assets, specifically US Treasurys. DMC’s intermediate-term portion of the Fund averaged an 11% allocation during the12-month period, but good security selection within the asset class wasn’t enough to offset the underweight.
DMC used derivatives in its intermediate portion of the Fund for risk management purposes. These included interest rate futures, option contracts to manage exposure to changes in securities prices caused by interest rates or market conditions, and credit default swaps and interest rate swaps. Of these, futures represented the largest return
component and were material to overall performance in DMC’s intermediate portion of the Fund.
In this portion of the Fund, DMC’s allocation favored higher yielding sectors, including corporate bonds, emerging markets, and high yield. However, important risk management shifts were made during the fiscal year across several sectors. For example, entering the fiscal year, this portion of the Fund carried a nearly 33% allocation to high grade credit. With spreads for the asset class reaching multiyear tight levels in February 2018, DMC began to reduce exposure, to about 25% by the end of June 2018. Solid security selection across all the major subcategories of high grade credit contributed to relative returns in DMC’s intermediate-term component of the Fund. For example, a market weight to industrials returned 5.72% versus 4.96% for the benchmark sector.
Strong performance from investment grade chemicals, including issuers such asDow DuPont Inc., andNutrien Ltd.contributed to performance in DMC’s intermediate-term portion of the Fund. Performance within chemicals was tempered somewhat by exposure toRPM International Inc.convertible securities and long-dated debentures issued byMosaic Co.Several long-dated investments within the media and entertainment subcategory also performed well. Investments in the financial sector proved beneficial; contributors included higher-quality super-regional banksSunTrust Banks Inc.andPNC Bank NA.Additionally, exposure toCredit Suisse Group AGcontingent capital notes andBank of America Corp.preferred securities outperformed the benchmark return.USB Capital IXnoncumulative preferred securities andMorgan Stanleylong-dated senior unsecured bonds generated negative returns for the Fund’s fiscal year. High grade utilities represented a relatively small share of the risk but still helped drive performance through security selection during the Fund’s fiscal year.
An average allocation of 9% to high yield was somewhat beneficial to DMC’s intermediate-term portion of the Fund during the fiscal year. Investments in the midstream sector performed well, including pipeline operatorsNuStar Logistics LPandTarga Resources Partners LP.Performance within the independent subsector of energy was mixed.Alta Mesa Holding LPdelayed regulatory filings, and subsequently earnings, leading to significant price declines. Exposure toChesapeake Energy Corp.andSouthwestern Energy Co.partially offset this. Solid performance fromCalpine Corp.andNRG Energy Inc.helped utilities as well.
Floating-rate component
For the fiscal year, DMC’s floating-rate portion of the Fund returned +3.04% (before expenses), outperforming DMC’s internal benchmark, the ICE BofAML US Dollar3-Month Deposit Offered Rate Constant Maturity Index, which returned +2.48% for the fiscal year. (All returns are before expenses.)
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Investment grade credit exposure of 54% was the largest contributor to performance in DMC’s floating-rate portion of the Fund. With a total return of 3.21%, investment grade credit contributed 176 basis points to performance, net of interest rate swap exposure, outperforming the ICE BofAML US Dollar3-Month Deposit Offered Rate Constant Maturity Index. (A basis point equals one hundredth of a percentage point.) Investment grade credit continued to be the largest sector allocation in this portion of the Fund. All four of the major investment grade sectors within DMC’s floating-rate portfolio – industrial, financial, utility, and noncorporate – outperformed the ICE BofAML US Dollar3-Month Deposit Offered Rate Constant Maturity Index.
Industrial exposure of 24% – the largest sector exposure in DMC’s floating-rate portion of the Fund – returned 3.59%. Leading performers wereAbbott Laboratories,General Dynamics, andDollar Tree Inc.Detractors among industrials wereCVS Health Corp.,General Electric Co.,andPenske Truck Leasing. Financials, at a 20% allocation, returned 3.03%. Banks were significant contributors among financial holdings.Wells Fargo & Co.,Citigroup Inc., andBank of America Corp.were leading contributors. Detractors among financials includedUS Bancorp,Marsh & McLennan Cos. Inc., andJapan Bank for International Cooperation. The utility exposure (4%) and the noncorporate sector (6%) in DMC’s floating-rate portion of the Fund returned 2.89% and 2.84%, respectively.
Bank loan holdings (24% allocation) contributed to performance, returning 2.79%, outperforming the ICE BofAML US Dollar3-Month Deposit Offered Rate Constant Maturity Index. Strong contributors among bank loans wereSinclair Broadcast Group Inc.,Cushman & Wakefield PLC, andFirst Data Corp.Detractors includedEnvision Healthcare Corp.,American Tire Distributors,andUnivision Communications. The average quality of the bank loans was Ba3, relatively high quality compared with most bank loan indices. High yield and emerging markets each made up about 1% of the DMC’s floating-rate portion of the Fund, returning 2.93% and 3.44%, respectively.
Within structured credit (18% allocation), asset-backed securities (ABS) accounted for roughly a 13% allocation in DMC’s floating-rate component of the Fund, and slightly underperformed the ICE BofAML US Dollar3-Month Deposit Offered Rate Constant Maturity Index, posting a return of 2.46%. The ABS exposure was primarily invested in nonresidential ABS, including credit cards and autos, a source of high-quality liquidity and income. Collateralized loan obligations (CLOs) (5% allocation) outperformed the ICE BofAML US Dollar
3-Month Deposit Offered Rate Constant Maturity Index, with DMC’s ABS holdings returning 2.64%. Holdings in CLOs continued to be senior in the capital structure andAAA-rated.
DMC uses interest rate swaps to hedge the duration of fixed-rate bonds within the floating-rate portion of the Fund, to maintain an overall portfolio duration of roughly 0.25 years. During the12-month period, interest rate swaps hedged fixed-rate exposure in 23% of this portion of the Fund. When using an interest rate swap as a portfolio hedge, one pays a fixed rate and receives a floating rate based on the3-month London interbank offered rate or LIBOR). During the fiscal year, the Treasury yield curve flattened as the Fed continued hiking rates and reducing its balance sheet. The2-year note was flat while5- and10-year notes both declined by 32 basis points. The rate on30-year Treasurys fell 15 basis points. The interest rate hedges detracted from returns in DMC’s floating-rate component of the Fund as interest rates fell in the fourth quarter of 2018 and the first quarter of 2019.
DMC also initiated a credit hedge during the fiscal year in an attempt to protect the Fund against potential spread volatility. This credit hedge did not have a significant effect on the Fund’s performance and was unwound early in the first quarter of 2019.
PIMCO
Note: The portfolio-level discussion presented below appears in two sections. The first covers PIMCO’s portion of the Fund that focused on an intermediate-term strategy, while the second covers its portion that focused on a low duration strategy.
Intermediate-term component
During the fiscal year, the intermediate-term component of PIMCO’s portion of the Fund returned +5.55% (before expenses) and outperformed its benchmark, the Bloomberg Barclay’s US Aggregate Index, which returned +4.48% for the same period.
Interest rate strategies added to performance for PIMCO’s intermediate-term component of the Fund. US yield curve positioning, including short exposure tofront-end rates and an overweight to intermediate rates, added to performance as the yield curve flattened.Non-US interest rate strategies detracted from performance for this portion of the Fund, including short exposure to Japanese and UK interest rates.
Spread sector strategies were positive for returns in PIMCO’s intermediate-term portion of the Fund. An underweight to investment grade corporate spread duration late in the fiscal year added to performance as credit spreads widened. Security selection within investment grade credit also added to performance. A modest allocation to high yield credit contributed as the sector outperformed like-duration Treasurys. An overweight to agency MBS was neutral as the sector performed in line with like-duration Treasurys. Holdings of selectnon-agency MBS added to performance. Lastly, an allocation to US Treasury inflation-protected securities (TIPS) detracted from performance as inflation expectations declined during the fiscal year.
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Optimum Fixed Income Fund
Currency strategies contributed to performance for PIMCO’s intermediate-term portion of the Fund, including a long-dollar bias relative to the Japanese yen at the start of the fiscal year and a long-dollar bias relative to a basket of Asian emerging market currencies.
At the end of the Fund’s fiscal year, PIMCO continued to favor US interest rate exposure relative to other developed markets, including the United Kingdom and Japan, as it believed rates in the US are likely to be relatively range-bound, and positioning in Japan may serve as an inexpensive hedge against global rates rising. PIMCO continued to have modest exposure to TIPS given market expectations that remain below long-term fair value. They also provide a hedge against upside surprises in inflation.
Low duration component
The low duration component of PIMCO’s portion of the Fund returned +3.06% (before expenses) and outperformed PIMCO’s internal benchmark, the ICE BofAML1-3 Year US Treasury Index, which returned +2.70% for the same period.
Spread sector strategies added to returns in PIMCO’s low duration portion of the Fund. Holdings of selectnon-agency mortgages contributed to performance, as these securities remained well supported by continued strength in the US housing market. Tactical investment grade credit exposure, including a focus on shorter duration corporates, was positive. Lastly, an allocation to US TIPS detracted from performance in PIMCO’s low duration portion of the Fund as inflation expectations declined.
Currency positioning contributed to performance in this portion of the Fund. A long-dollar bias relative to the Japanese yen early in the12-month period contributed to returns in this portion of the Fund. Additionally, a long-dollar bias versus the euro added to performance as the euro depreciated relative to the US dollar during the fiscal year.
Interest rate strategies detracted from performance in PIMCO’s low duration portion of the Fund. An underweight to US duration and yield curve positioning, including short exposure to intermediate andlong-end rates, detracted from performance as intermediate andlong-end rates fell during the fiscal year. PIMCO prefers the intermediate portion of the curve, as it believes rates are likely to be range bound in the near term.
PIMCO remained defensive in positioning its low duration portion of the Fund for a steeper yield curve, to minimize overall interest rate risk. At fiscal year end, PIMCO continued to have modest exposure to TIPS as break-even inflation rates remained low and it found TIPS provide a good hedge against upside inflationary surprises.
PIMCO used several types of derivatives to manage risks associated with market volatility and interest rate risk. However, the use of credit default swaps, forwards, interest rate swaps, options, swaptions, and futures did not have a material impact on performance during the fiscal year within either component of PIMCO’s portion of the Fund.
4
Optimum International Fund
April 9, 2019 (Unaudited)
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Performance review (for the year ended March 31, 2019) | | | | | | | | |
Optimum International Fund (Institutional Class shares)* | | | 1-year return | | | | – 5.28% | |
Optimum International Fund (Class A shares)* | | | 1-year return | | | | – 5.53% | |
MSCI ACWI ex USA Index (net) (current benchmark) | | | 1-year return | | | | – 4.22% | |
MSCI ACWI ex USA Index (gross) (current benchmark) | | | 1-year return | | | | – 3.74% | |
MSCI EAFE Index (net) (former benchmark) | | | 1-year return | | | | – 3.71% | |
MSCI EAFE Index (gross) (former benchmark) | | | 1-year return | | | | – 3.22% | |
Past performance does not guarantee future results.
For complete, annualized performance for Optimum International Fund, please see the table on page 23.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
Effective Jan. 19, 2018, the MSCI ACWI ex USA Index replaced the MSCI EAFE Index in order to reflect the Fund’s ability to invest in emerging market securities.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
*Total returns for the report period presented in the table differ from the returns in “Financial highlights.” The total returns presented in the above table are calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total returns presented in “Financial highlights” are calculated in the same manner, but also take into account certain adjustments that are necessary under US generally accepted accounting principles (US GAAP) required in the annual report.
Advisor
Delaware Management Company (DMC)
Sub-advisors
Acadian Asset Management LLC (Acadian)
EARNEST Partners LLC (EARNEST)
Market overview
Global equity markets sharply recovered during the final three months of the Fund’s fiscal year ended March 31, 2019, as easing monetary policy and promising trade developments seemed to allay investors’ earlier concerns. Domestic markets boasted their strongest quarterly returns in a decade as all major US benchmark equity indices were up more than 10% during the first quarter of 2019. For the Fund’s full fiscal year, US large-caps, represented by the Russell 1000® Index, rose 9.30% and small-caps, represented by the Russell 2000® Index, gained just 2.05%. Developed international markets lagged, with the MSCI ACWIex-USA Index (net) declining 4.22%. Emerging markets fared even worse with the MSCI Emerging Markets Index (net) falling 7.4% during the fiscal year.
During the final three months of the Fund’s fiscal year, the US Federal Reserve abruptly changed its near-term outlook for interest rates. In response to a slowing global economy, the Fed signaled in March 2019 that it would pause its recent string of interest rate increases. Fed officials continued to maintain a generally optimistic stance on the US economy but cautioned that growth may slow, noting that it
expects US gross domestic product (GDP) to expand 2.3% this year, and 2.0% next year.
International trade policy continued to be a major focus of equity markets as investors analyzed the effect of both pending and potential tariffs between the United States and its trade partners.US-China trade discussions progressed during the second half of the fiscal year as tensionsde-escalated and further (previously planned) tariff increases were postponed.
Nonetheless, Chinese economic growth continued to decelerate as the government lowered its economic growth target to6.0%-6.5% for the year. The government pointed to uncertainties in its negotiations with the US as the main challenge facing the Chinese economy. Because of these uncertainties, the MSCI China Index fell 6.1% during the Fund’s fiscal year. However, like other equity indices, the index advanced 17.7% during the last three months of the fiscal year as investors received clarity on the challenges that the Chinese markets have faced and seemed encouraged by the progress made on trade negotiations during the first quarter of 2019.
The price of crude oil gained more than 30% during the last quarter of the Fund’s fiscal year. The Organization of the Petroleum Exporting Countries (OPEC) sought to address a supply glut with production cuts, and its output sunk to a four-year low in March, with Saudi Arabia shouldering most of the burden.
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Optimum International Fund
Within the European Union (EU), fourth-quarter GDP growth increased, totally 1.4% for 2018. The United Kingdom’s Brexit saga continued amid increasing uncertainty about how the nation will negotiate its exit from the EU.
Source: Bloomberg.
Fund performance
For the fiscal year, Optimum International Fund underperformed its current benchmark, the MSCI ACWI ex USA Index, and its former benchmark, the MSCI EAFE Index. Acadian’s portion of the Fund slightly underperformed the benchmark (net of fees). Its strong country allocations more than offset the small negative effect of its stock selection. However, less successful investments included stock selection in France, a combination of stock selection and an underweight position in the UK, and a combination of stock selection and an overweight position in Indonesia. In EARNEST’s portion of the Fund, stock selection was the principal factor behind the underperformance. Most of the underperformance in EARNEST’s portion of the Fund came during the fourth quarter of 2018, when increased trade tensions between the US and China sparked a broad selloff in equities. Investors tend to flock toward more defensive sectors, such as utilities, whenever there is an increased level of uncertainty in the market. EARNEST’s portion of the Fund was underweight these defensive sectors, however, since EARNEST does not view most of these companies as attractive from a fundamental perspective.
Acadian
Throughout the Fund’s fiscal year, Acadian remained focused on its disciplined, value-focused, multi-factor approach and sought to manage its portion of the Fund with consistency, objectivity, and appropriate risk controls.
Stock selection in industrial and material sectors detracted from performance in Acadian’s portion of the Fund, which saw the weakest results from positions in continental European industrial stocks and emerging markets’ materials stocks.
A combination of stock selection and an overweight position in utilities aided performance in Acadian’s portion of the Fund, as did a combination of stock selection and an underweight position in financials. Acadian’s portion of the Fund benefited most from positions in Japanese utilities and Continental European financials.
Overall, stock selection in Japan, an overweight position in Brazil, and a combination of stock selection and an overweight position in Israel contributed to performance in Acadian’s portion of the Fund during the fiscal year.
Two detractors from performance in Acadian’s portion of the Fund wereDeutsche Lufthansa AGandEramet. Lufthansa slumped in October 2018 after the German air carrier posted a decline in third-quarter underlying earnings, dampened by higher fuel prices, delays,
and costs associated with integrating Air Berlin into its Eurowings unit. Meanwhile, shares of Eramet tumbled in July after the French mining company posted weaker-than-expected first-half results. Lufthansa was still held at the end of the Fund’s fiscal year due to contributions from value and quality metrics. Acadian still held Eramet in its portion of the Fund at the end of the fiscal year, owing primarily to favorable scores on technical, growth, and quality signals
During the fiscal year, contributors to Acadian’s portion of the Fund includedTokyo Electric Power Co. Holdings Inc.andSumitomo Dainippon Pharma Co. Ltd. Shares of Tokyo Electric Power advanced during the second quarter of the Fund’s fiscal year after the Japanese utility company posted an increase in annual recurring profit, owing largely to higher energy prices. Meanwhile, shares of Sumitomo Dainippon Pharma jumped during the last three months of the fiscal year after the Japanese drug maker reached settlements to end patent-infringement lawsuits related to its Latuda schizophrenia treatment in the US.
At the end of the fiscal year, Acadian’s largest country overweights compared to the MSCI ACWI ex USA Index in its portion of the Fund were Israel, Canada, Brazil, China, and the Netherlands. The UK, Switzerland, France, and Japan were the largest underweight positions. At the sector level, Acadian continued its emphasis on healthcare and utilities, while consumer discretionary and consumer staples were significantly underweighted.
EARNEST
As abottom-up(stock-by-stock), fundamental manager, EARNEST looks beyond the quarter-over-quarter noise of the market and strives to position its portion of the Fund for growth over a full market cycle.
A relative overweight allocation to the materials sector and a relative underweight allocation to utilities detracted from performance in EARNEST’s portion of the Fund during the fiscal year, while strong stock selection in the healthcare and consumer staples sectors contributed to performance.
BYD Co. Ltd., a Chinese manufacturer of automobiles and one of the world’s largest manufacturers of rechargeable batteries, detracted from performance in EARNEST’s portion of the Fund. During the fiscal year, BYD reported revenue growth on strong sales of its alternative fuel vehicles (AFVs). AFVs continue to be a strong source of growth for the company as the Chinese government has put more emphasis on environmental considerations. Despite the generally upbeat report, however, earnings missed consensus expectations, and investors sold the stock.
Shanghai Fosun Pharmaceutical Group Co. Ltd.– a leading healthcare company in China that generates most of its revenue from manufacturing both generic drugs and traditional Chinese medicines – also detracted from performance in EARNEST’s portion of the Fund. Investors benefited from significant stock price appreciation in 2017
6
as they seemed to pay closer attention to the valuations of individual companies with defensible products. But, in 2018, investors grew concerned with the potential effect of international trade disputes. As a result, Chinese securities suffered and Shanghai Fosun Pharmaceutical trailed its healthcare peers.
At the end of the Fund’s fiscal year, EARNEST continued to hold BYD and Shanghai Fosun Pharmaceutical in its portion of the Fund. EARNEST believes BYD could potentially benefit from environmentally friendly policy shifts imposed by the Chinese government. With respect to Shanghai Fosun Pharmaceutical, EARNEST believes theUS-China trade disputes should have little impact going forward since a significant portion of the company’s revenues come from China.
Headquartered in Brazil,JBS Co. Ltd.contributed strongly to EARNEST’s portion of the Fund. JBS is one of the largest meat-processing companies in the world with an extensive product portfolio focusing mainly on beef, poultry, and pork as well as high value-added prepared and processed foods. While based in Sao Paulo, the company generates more than half of its revenue in the US where beef consumption is nearly quadruple the world average. With a forwardprice-to-earnings (P/E) ratio in the single digits, EARNEST believes JBS continues to represent a compelling opportunity from a valuation standpoint compared to its peers.
Another contributor to performance in EARNEST’s portion of the Fund wasCapgemini SE, a world leading provider of technology consulting and software implementation services. The company offers strategic advice ranging from business strategy to technical execution and serves a broad range of clients within the financial services and manufacturing industries. Presently, business spending on outsourced technology services continues to outpacein-house technology investment while companies continue to embrace the cloud at the expense of hardware and infrastructure. EARNEST believes these two trends could benefit Capgemini as an industry leader with economies of scale and an ability to offer a wider array of solutions.
As of the end of the fiscal year, EARNEST’s portion of the Fund held overweights in the consumer discretionary, financials, healthcare, information technology, and materials sectors and underweights in communication services, consumer staples, energy, industrials, real estate, and utilities sectors. These relative overweight and underweight positions compared to the benchmark are an outgrowth of where EARNEST perceives individual opportunities.
Overall, Optimum International Fund used derivatives, including foreign currency exchange contracts, during the fiscal year. However, these had a minimal effect on performance.
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Optimum Large Cap Growth Fund
April 9, 2019 (Unaudited)
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Performance review (for the year ended March 31, 2019) | | | | | | | | |
Optimum Large Cap Growth Fund (Institutional Class shares) | | | 1-year return | | | | +11.86% | |
Optimum Large Cap Growth Fund (Class A shares) | | | 1-year return | | | | +11.60% | |
Russell 1000®Growth Index (benchmark) | | | 1-year return | | | | +12.75% | |
Past performance does not guarantee future results.
For complete, annualized performance for Optimum Large Cap Growth Fund, please see the table on page 26.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Advisor
Delaware Management Company (DMC)
Sub-advisors
ClearBridge Investments, LLC (ClearBridge)
T. Rowe Price Associates, Inc. (T. Rowe Price)
Market overview
Robust corporate earnings, spurred by the benefits of the US Tax Cuts and Jobs Act that passed in December 2017, and strong economic growth were catalysts for stocks during the first half of the fiscal year ended March 31, 2019. US equities rose steadily before market volatility took hold in the fourth quarter of 2018, driven by shifting sentiment on a variety of macroeconomic issues.
Quarterly earnings for companies in the S&P 500® Index increased at a double-digit rate for the first three quarters of the Fund’s fiscal year. Gross domestic product (GDP) growth peaked at 4.2% in the second quarter of 2018 before cooling to 2.2% in the fourth quarter, while the unemployment rate ended February 2019 at 3.8%, near multidecade lows. Crude oil prices gained, finishing the Fund’s fiscal year at slightly more than $60 a barrel. Oil’s 30% gain in the first three months of 2019 was the largest quarterly percentage gain since 2009.
Stocks sold off sharply in the fourth quarter of 2018 amid concerns about slowing global growth, a protracted trade and tariff battle between the United States and China, and the likelihood that the US Federal Reserve would continue to raise interest rates.
However, equities largely rebounded in early 2019 as investors eased their concerns about potential monetary policy missteps and global trade tensions. In particular, stocks received a boost after the Fed signaled in March 2019 that it no longer intended to raise interest rates in 2019. Additionally, the Fed indicated that it would end its program of balance-sheet reductions in September 2019.
Large-cap stocks outperformed theirmid- andsmall-cap peers during the Fund’s fiscal year. Momentum and growth-oriented stocks continued to lead the market. As measured by the various Russell indices, growth stocks outperformed value across all market capitalizations for the12-month period.
Source: Bloomberg.
Fund performance
Optimum Large Cap Growth Fund underperformed its benchmark, the Russell 1000 Growth Index, for the Fund’s fiscal year. ClearBridge outperformed the benchmark in its portion of the Fund, benefiting from positive stock selection. In particular, stock selection in the information technology (IT), consumer discretionary, materials, and communication services sectors contributed to relative outperformance. Additionally, the ClearBridge portion of the Fund benefited from a relative underweight to industrials. T. Rowe Price’s portion of the Fund achieved a positive return but underperformed the benchmark for the fiscal year, primarily as a result of stock selection. From a sector standpoint, consumer discretionary, financials, and consumer services detracted the most from performance in T. Rowe Price’s portion of the Fund; while IT; industrials and business services; and healthcare were the largest contributors to performance.
ClearBridge
ClearBridge normally invests in equity securities (or other instruments with similar economic characteristics) of US companies with large market capitalizations. ClearBridge’s core holdings are large-capitalization companies that it believes are dominant in their industries due to product, distribution, or service strength. ClearBridge believes it is late in the bull market cycle and therefore critical to separate business models and identify companies that can move higher based on strong fundamentals rather than passive fund flows. ClearBridge believes that owning companies with defensible businesses and self-help characteristics should become more
8
important as growth slows and liquidity shrinks. Instead of using excess cash to buy back shares – an action responsible for about 40% of S&P 500 Index earnings during the fiscal year – ClearBridge believes companies will likely start paying down debt.
Healthcare detracted from performance in ClearBridge’s portion of the Fund as merger integration issues hurt dental supplierDentsply Sirona Inc.while negative clinical trials weighed on biotechnology holdingBiogen Inc.ClearBridge subsequently exited its position in Dentsply Sirona. ClearBridge continues to evaluate its options for Biogen, which sold off sharply after a surprise announcement that it was ending clinical trials for Alzheimer’s treatment aducanumab. ClearBridge has always recognized the risks in the company’s pipeline and continues to see value in its Spinraza franchise; however, the cancellation of Biogen’s Alzheimer’s program could negatively affect the stock’s long-term risk-reward profile.
Financials holdings also detracted from performance in ClearBridge’s portion of the Fund as the Fed’s decision to pause its tightening cycle weighed onCharles Schwab Corp., which operates a significant money market business. Performance issues in its active-management division hurtBlackRock Inc.BlackRock continues to grow organic assets +3% off a $6 trillion asset base in active, exchange-traded funds (ETFs), and passive strategies for both institutional and retail distribution partners as the company forges deeper relationships with their customers in a consolidating space. BlackRock also continues to manage costs lower while maintaining industry leading operating margins. Charles Schwab continues to grow organic assets and net new accounts at an industry leading 6% off a $3 trillion asset base. Cash sorting, where customers are looking for the highest return for their cash-like assets, has been volatile for Charles Schwab with its asset-sensitive balance sheet; however, Clearbridge believes this part of the business should stabilize soon.
In ClearBridge’s portion of the Fund, the IT and consumer discretionary sectors contributed the most to performance during the fiscal year. Consumer staples also contributed. IT exposure was paced by strong demand for enterprise software makers that support business transition to the cloud, includingVMware Inc.,Red Hat Inc., andPalo Alto Networks Inc., as well asAdobe Inc.,a significant contributor to the digital transformation of business processes. Consumer staples exposure was aided by solid execution from spices and seasonings makerMcCormick & Co. Inc.and warehouse retailerCostco Wholesale Corp.
Among individual companies held in ClearBridge’s portion of the Fund, global brewerAnheuser-Busch InBev SA/NVexperienced weakness in its core Latin American and South African markets, due to dollar strength and volume declines in the US. ClearBridge continues to hold the name as it believes Anheuser-Busch has shown a greater ability than its competitors to generate cash and maintain a strong moat around its business.
Significant exposure tonon-US oil and natural gas drillers hurtSchlumberger Ltd., an oilfield services provider. A sluggish pickup in activity and depressed capital spending in international markets, as well as a divergence in rising oil prices and the performance of energy stocks, all weighed on the company during the Fund’s fiscal year. That said, Schlumberger has dramatically rebased its cost structure for the new reality and pressed its competitive advantage with its suite of bundled offerings. ClearBridge continues to hold the name.
Amazon.com Inc.continued to dominate and innovate at high levels across its businesses, with particularly strong positions in three key areas related to the Internet: ecommerce, cloud infrastructure with Amazon Web Services (AWS), and advertising.
Microsoft Corp.was another notable performer for ClearBridge’s portion of the Fund, as it continued to see rapid conversion of clients to its cloud and Office 365software-as-a-service (SaaS) offering. Its Azure hybrid cloud solution saw consecutive quarters of 76% year-over-year growth and continued to be the fastest-growing part of its business. ClearBridge believes the pace of Azure, which saw its gross margins expand from themid-30% range a year ago to more than 50% in the latest quarter, should be key to determining the pace of Microsoft’s aggregate growth going forward.
ClearBridge believes that the current US economic expansion is showing signs of age. Rather than try to time shifts in the economy, ClearBridge continues to focus on portfolio companies and sourcing new growth ideas throughbottom-up (stock by stock) fundamental research. ClearBridge believes that a balanced approach to portfolio construction, characterized by the three buckets of growth companies – cyclical, stable, and select – has the potential to promote consistent long-term results. This perspective allows ClearBridge to be a more-active buyer during periods of price dislocation.
T. Rowe Price
T. Rowe Price normally invests in stocks of large-capitalization companies with one or more of the following characteristics: strong cash flow and an above-average rate of earnings growth; the ability to sustain earnings momentum during economic downturns; and occupation of a lucrative niche in the economy and ability to expand even during times of slow economic growth.
Among sectors, consumer discretionary was the leading relative underperformer in T. Rowe Price’s portion of the Fund due to stock selection. Financials underperformed due to stock choices and an overweight position. Within communication services, an overweight position combined with unfavorable stock selection detracted from relative results. In contrast, IT was the largest relative contributor in T. Rowe Price’s portion of the fund, driven by stock selection, while an underweight position had a negative effect. Industrials and business services contributed to performance due to stock selection and an
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Optimum Large Cap Growth Fund
underweight position. Stock picks in the healthcare sector also added to relative returns in T. Rowe Price’s portion of the Fund.
Looking at individual consumer discretionary holdings, shares of online travel companyBooking Holdings Inc., despite positive margin trends, retreated during the Fund’s fiscal year due to decelerating growth and softness in Europe that was attributable to the macroeconomic backdrop and unusual weather patterns. Another detractor in T. Rowe Price’s portion of the Fund was online retailerAlibaba Group Holding Ltd., as investor sentiment waned due to concerns about trade and regulatory uncertainty in China and the impending departure of its chairman and founder, Jack Ma. Shares came under further pressure as investments in local retail initiatives weighed on Alibaba’s near-term outlook. T. Rowe Price believes both companies remain positioned for future growth and it maintains its positions.
Shares of financial services firmTD Ameritrade Holding Corp.declined during the Fund’s fiscal year due to competitive pricing pressures and a cautious outlook from the Fed that indicated further near-term interest rate hikes were unlikely, as previously noted. Although TD Ameritrade has significant earnings leverage to rising interest rates, T. Rowe Price believes it is more than just a play on rates given its healthy margins and capital-light model, which allows earnings to be returned to shareholders via dividends and buybacks. T. Rowe Price believes the firm’s management is also strong, with a proven track record of success.
Shares ofVMware Inc.benefited from a robust IT spending environment as well as better execution and mix with broad-based topline growth across product categories and strong free cash flow generation. Hybrid cloud revenues continued to gain momentum, aided by VMware Cloud on Amazon Web Services.
Despite the two tragic crashes that have been linked to design flaws inThe Boeing Co.’s new 737 MAX 8 aircraft, shares of Boeing gained over the Fund’s fiscal year. Operating margins continued to expand thanks to favorable delivery volume and mix within its Commercial Airplanes division and better-than-expected revenue growth from its Defense, Space, and Security group.
Within the healthcare sector, surgical robotics companyIntuitive Surgical Inc.helped relative performance in T. Rowe Price’s portion of the Fund, as the company’s recent results showed notable strength in US procedure growth and robot placements. Intuitive Surgical has benefited from the growing adoption of its robotic da Vinci® surgical system, as well as positive investor reaction to the disclosure of the new da Vinci X®.
The Fed’s dovish turn and the growing hopes for a trade deal between the US and China have moderated two of the primary sources of uncertainty that derailed US stock markets late in 2018. The economic growth worries that emerged near the end of 2018 remain a more persistent source of concern, but T. Rowe Price generally does not anticipate a recession in the US this year. Earnings growth may be harder to come by, however, as the effects of the December 2017 tax cuts on year-over-year comparisons rolls off and fiscal stimulus wanes. T. Rowe Price believes this should favor an active approach to investing, along with careful fundamental research, to find companies that it believes are able to leverage competitive advantages to prosper in a more challenging environment.
Overall, Optimum Large Cap Growth Fund used derivatives, including foreign currency exchange contracts, during the fiscal year. However, these had a minimal effect on performance.
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Optimum Large Cap Value Fund
April 9, 2019 (Unaudited)
| | | | | | |
Performance review (for the year ended March 31, 2019) | | | | | | |
Optimum Large Cap Value Fund (Institutional Class shares) | | | 1-year return | | | +4.08% |
Optimum Large Cap Value Fund (Class A shares) | | | 1-year return | | | +3.79% |
Russell 1000®Value Index (benchmark) | | | 1-year return | | | +5.67% |
Past performance does not guarantee future results.
For complete, annualized performance for Optimum Large Cap Value Fund, please see the table on page 29.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Advisor
Delaware Management Company (DMC)
Sub-advisors
Massachusetts Financial Services Company (MFS) Rothschild Asset Management Inc. (Rothschild)
Market overview
The global economy decelerated during the Fund’s fiscal year ended March 31, 2019, led by weakness in China and Europe as growing trade disputes undermined business and investor sentiment. Slower growth, along with tighter financial conditions, contributed to an uptick in market volatility late in 2018. Equity valuations fell and credit spreads widened, fueled in part by concerns that the US Federal Reserve was on course to further tighten monetary policy after it lifted rates for a fourth time in 2018.
In response to the market’s negative reaction to these policy signals the Fed signaled in March 2019 that it would not raise rates in 2019. The Fed also indicated that it would maintain a larger balance sheet than it had previously. These dovish shifts helped equity valuations rebound, reduced volatility, and narrowed credit spreads. Central banks globally tilted more dovish as well, with China lowering reserve requirements, the Bank of Canada and Bank of England holding rates steady, and the European Central Bank acknowledging that it may not be able to hike rates in the fall of 2019 as it had earlier projected.
The flattening of the yield curve in the United States also gained attention given its historical accuracy in predicting economic downturns. Against this backdrop, corporate profitability weakened, as consensus expectations for the S&P 500® Index declined rather sharply (though remaining modestly positive at roughly 3% growth in 2019). Notwithstanding the extreme bouts of market volatility, US large-capitalization stocks (as measured by the Russell 1000 Value Index) returned 5.67% for the Fund’s fiscal year.
Source: Bloomberg.
Fund performance
Optimum Large Cap Value Fund underperformed its benchmark, the Russell 1000 Value Index, for the Fund’s fiscal year ended March 31, 2019. Both the MFS and Rothschild portions of the Fund reported performance that was positive on an absolute basis but short of the benchmark return. In MFS’s portion of the Fund, underweight allocations to both real estate and utilities sectors detracted from performance. Stock selection in the energy sector also held back relative results. MFS’s portion of the Fund benefited from stock selection and, to a lesser extent, an overweight in the healthcare sector. Stock selection in both the materials and industrials sectors also benefited relative returns. Overall, stock selection was the primary detractor from performance in Rothschild’s portion of the Fund, with poor selection in healthcare, consumer discretionary, and industrials outweighing contributions from information technology, consumer staples, and utilities. In Rothschild’s portion of the Fund, sector allocation was slightly positive, benefiting from underweights to materials and consumer discretionary and an overweight to communication services. This was dampened somewhat as underweights to consumer staples and utilities and an overweight to energy hindered returns.
MFS
MFS has maintained a consistent investment approach since its strategy’s inception. For its portion of the Fund, MFS uses a long-term time horizon in making investment decisions. MFS maintains a disciplined investment philosophy and process that is focused on investing in what it views as high-quality companies trading at inexpensive valuations.
Oilfield services providerSchlumberger Ltd.was a leading detractor from performance in MFS’s portion of the Fund. Its significant exposure tonon-US oil and natural gas drillers hurt the company. A sluggish pickup in activity and depressed capital
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Optimum Large Cap Value Fund
spending in international markets also weighed on Schlumberger. MFS continued to hold Schlumberger at fiscal year end because of its management’s track record of creating differentiated,value-add services for customers, and what MFS viewed as an attractive valuation.
Overweight positions in several financial services firms likewise detracted from performance for MFS’s portion of the Fund, including custody bankState Street Corp., tobacco companyPhilip Morris International, and financial services firmsGoldman Sachs Group Inc.,PNC Financial Services Group Inc., andJPMorgan Chase & Co.MFS continued to hold each of these financial names in its portion of the Fund, supported by what MFS viewed as attractive valuations. MFS trimmed its stake in Philip Morris but believes the company is well positioned in its market.
Defense contractorNorthrop Grumman Corp.was another detractor in MFS’s portion of the Fund as the company lost a Missile Defense Agency contract that it had held since 1995. The company is engaged in the provision of security services including cyber security for computers and communications and is also involved in aerospace systems, designing and producing manned aircraft, spacecraft, and high-energy laser systems. MFS continued to hold shares of Northrop Grumman at fiscal year end given the company’s alignment with US national defense strategy and what MFS views as an attractive valuation.
Healthcare-focused instrument and supplies manufacturerDanaher Corp.was a leading contributor to performance for MFS’s portion of the Fund during the fiscal year. Its reputation as a defensive stock played out as it continued to grow sales in China, seemingly immune to China’s economic slowdown and ongoing trade dispute with the US. Freight-hauling railroadUnion Pacific Corp.also contributed to performance for MFS’s portion of the Fund.
Stocks in other sectors that aided relative performance for MFS’s portion of the Fund included positions in consulting and technology solutions firmAccenture PLC, insurance brokerAon PLC, global food companyNestle S.A.(Switzerland), premium drinks distributorDiageo PLC(United Kingdom), and provider of financial services technologyFiserv Inc.
Rothschild
Rothschild employs an integrated approach that balances quantitative analysis, fundamental research, and risk management guidelines to identify stocks of companies it believes possess attractive relative valuation and an ability to exceed market expectations. Rothschild’s investment process has been stable through many market cycles, maintaining a consistent approach even as economic and market environments fluctuate. Rothschild believes that volatile market environments such as the one experienced during the Fund’s fiscal year can create opportunities for its bottom-
up (stock by stock) approach to stock selection, as extreme shifts in near-term market sentiment can result in greater price inefficiencies at the individual stock level.
Individual detractors to Rothschild’s portion of the Fund includedState Street Corp., whose shares declined sharply during the fiscal year. In addition to interest rate and competitive headwinds, the company announced a dilutive acquisition (Charles River Development) that was not well received by investors. Nonetheless, in Rothschild’s view, the stock has an inexpensive valuation, low market expectations, and is well positioned in a competitive landscape.
CVS Health Corp.was a significant detractor from performance during the fiscal year as its shares declined more than 30%. The company was pressured across the drug-supply chain, which has been adversely affected by growing political uncertainly. CVS’s guidance for 2019 includes a greater amount of investment in the business, which largely offsets the Aetna deal-related synergy for the fiscal year. Rothschild exited its position in CVS for what it viewed as more attractive options.
Consumer discretionary companiesBorgWarner Inc.andeBay Inc.also detracted from performance in Rothschild’s portion of the Fund. BorgWarner, a manufacturer of car components, lagged as some of itsluxury-car customers, located in both the US and China, slowed purchases. Rothschild reduced its weighting in the stock. The holding in eBay, while a cheap stock, proved to be a moderate value trap, as the expected benefits of changes in strategy did not materialize. Concluding that the company may not improve soon, if ever, Rothschild exited the position during the Fund’s fiscal year.
In the financials sector, the largest sector in the benchmark,Huntington Bancshares Inc.andSunTrust Banks Inc.were significant detractors, as wasE*TRADE Financial Corp.The Fed’s decision to hold rates steady in 2019 was largely to blame. Rothschild’s portion of the Fund did benefit by not owning Goldman Sachs Group Inc. or BlackRock Inc., as the two firms detracted significantly from the benchmark.
On a relative basis, Rothschild added significant value in the information technology sector. Rothschild was underweightIntelfor much of the fiscal year. In the benchmark, Intel returned more than 5% for the12-month period yet contributed about 0.13 percentage points of outperformance for Rothschild’s portion of the Fund. Shares ofBroadcom Inc.gained more than 30% as it reported strong quarterly earnings and boosted its dividend by 50% in 2018. The company also issued fiscal year 2019 guidance above expectations due to accretion and inclusion of the results of CA Technologies (a software company Broadcom acquired). The stock performed well versus its semiconductor peers due to its cheap valuation, high free cash flow generation, and attractive dividend yield. The stock sidestepped the semiconductor market downturn in the fourth
12
quarter of 2018 because it has low exposure to cyclical end markets. Another contributor wasCisco, which Rothschild owned for the entire fiscal year. Cisco contributed 0.34 percentage points of performance to Rothschild’s portion of the Fund.
Shares ofMicrosoft Corp.gained more than 30% during the fiscal year as the company continued to perform well after delivering sound quarterly results. Microsoft beat estimates on revenue, margins, and earnings per share (EPS). The results also seemed to serve as an affirmation that revenues and earnings will likely accelerate in fiscal year 2019, driven by its Azure and Office 365 offerings as they are now large enough to significantly move the needle.
The utility sector was another contributor to absolute and relative performance for Rothschild’s portion of the Fund. Generally, the sector was in favor due to the steady earnings growth and
reasonable dividend yields in what was perceived for most of the Fund’s fiscal year as a period of slowing growth. From a market perspective, utilities were in favor for much of the12-month period as fears of slowing global growth seemed to sway investors to look at the yield and growth characteristics of the sector. While not growing dramatically, the high single digits earnings growth of some of the stocks in the Fund appealed to Rothschild, as did the lack of exposure to foreign currency translations. Strong performers for Rothschild’s portion of the Fund includedXcel Energy, (up 27% during the fiscal year) which added 0.31 percentage points to performance, andDTE Energy, which contributed 0.17 percentage points to performance in Rothschild’s portion of the Fund.
Overall, Optimum Large Cap Value Fund used derivatives, including foreign currency exchange contracts, during the fiscal year. However, these had a minimal effect on performance.
Portfolio management reviews
OptimumSmall-Mid Cap Growth Fund
April 9, 2019 (Unaudited)
| | | | | | |
Performance review (for the year ended March 31, 2019) | | | | | | |
OptimumSmall-Mid Cap Growth Fund (Institutional Class shares) | | | 1-year return | | | +8.97% |
OptimumSmall-Mid Cap Growth Fund (Class A shares) | | | 1-year return | | | +8.69% |
Russell 2500™Growth Index (benchmark) | | | 1-year return | | | +7.54% |
Past performance does not guarantee future results.
For complete, annualized performance for OptimumSmall-Mid Cap Growth Fund, please see the table on page 32.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
Advisor
Delaware Management Company (DMC)
Sub-advisors
Columbus Circle Investors (CCI)
Peregrine Capital Management, LLC (PCM)
Market review
While the market was relatively strong for small- andmid-cap growth stocks during the Fund’s fiscal year ended March 31, 2019, volatility picked up markedly during the period. The Federal Reserve raised interest rates by 0.25 percentage points four separate times in 2018, providing a tailwind for growth in contrast to the period of low interest rates that had supported value,low-growth, and dividend-paying stocks. However, investors’ concerns that rising interest rates could lead to a recession drove a broad-based selloff during the last three months of 2018. Subsequently, this erased all previous gains for the Russell 2500 Growth Index, and the Index was almost down more than 10% in December. The continued lack of progress in the trade dispute between the United States and China and the US government shutdown added to worries about an economic slowdown. The Fed’s suspension of interest rate increases in March 2019, however, seemed to reassure investors that it was listening to the market, restoring an increased appetite for secular growth stocks and strong company-specific stories. For the Fund’s full fiscal year, the Russell 2500 Growth Index gained 7.54%, solidly ahead of comparable core and value indices.
Source: Bloomberg.
Fund performance
OptimumSmall-Mid Cap Growth Fund outperformed its benchmark, the Russell 2500 Growth Index, for the Fund’s fiscal year. CCI’s portion of the Fund outperformed the benchmark primarily as a result of an overweight position and strong stock selection in technology, but PCM’s portion of the Fund modestly trailed the benchmark due to market conditions at odds with its valuation-sensitive growth style.
CCI
As noted above, stock selection and an overweight in the technology sector drove performance for CCI’s portion of the Fund. Stock selection in the consumer discretionary sector also contributed to performance. An overweight in the energy sector and stock selection in financials detracted from performance in CCI’s portion of the Fund.
CCI uses a growth-oriented investment philosophy of “positive momentum and positive surprise” in which CCI strives to invest in what it views as good companies getting stronger and in companies whose fundamentals are exceeding investor expectations.
During the fiscal year,Zendesk Inc., a leading provider of cloud-based software for customer service and support, contributed the most to outperformance in CCI’s portion of the Fund. The company’s solutions are easier to deploy and use than legacy competitive products and provide a single view across multiple customer support channels. Strong secular adoption by enterprises has resulted in larger deal sizes, reduced client churn, and lower customer acquisition costs, which have all contributed to continued rapid revenue and cash flow growth.
Five9 Inc., a prominent provider of cloud-based infrastructure software for customer contact centers, also contributed to CCI’s portion of the Fund. Five9 has replaced legacy solutions from competitors like Avaya, which continue to struggle both competitively and financially.
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Callon Petroleum Co., an independent oil and gas firm engaged in the exploration and development of crude oil in the Permian Basin in Texas, detracted the most from performance in CCI’s portion of the Fund during the fiscal year. Despite better-than-expected well performance from the company’s core Midland and Delaware basins, the plunge in oil prices in late 2018 drove the stock down. CCI continues to hold Callon Petroleum – recent well results suggest the potential for increases in recoverable reserves while oil prices have lately recovered.
Evolent Health Inc., a leading provider of services that enable healthcare systems to transition to value-based delivery, also detracted from performance in CCI’s portion of the Fund. Solvency concerns with one of Evolent Health’s largest customers initially affected shares. The shares subsequently declined further on the back of weak financial guidance for 2019 that was hurt by program losses, as well as slower-than-expected growth at its new Florida Medicaid programs. As a result, CCI exited the remainder of its position in Evolent Health.
While CCI recognizes a more dovish Fed and the potential effects of its policies on the overall market environment, little has changed with respect to the positioning of its portion of the Fund. CCI continues to focus on what it views as good companies with positively surprising stories that it believes have the potential to be increasingly rewarded in a world where growth is becoming scarce. CCI’s portion of the Fund is most overweight with technology stocks tied to trends such as cloud computing and software, the Internet of Things (IoT), cybersecurity, and wireless 5G. Additionally, CCI is overweight consumer discretionary stocks that benefit from strength in employment and consumer confidence, as well as Internet-based business models. CCI continues to remain underweight industrials and materials, due to a lack of compelling secular growth stories and where shares are more exposed to global growth concerns. CCI is also underweight healthcare stocks, primarily biotechnology shares, due to the binary nature of early-stage drug trials.
PCM
PCM’s portion of the Fund modestly underperformed the benchmark during the fiscal year. PCM’s process focuses on the acquisition of rapidly growing companies at what it views as reasonable valuations. During the Fund’s fiscal year, however,larger-cap stocks and the most highly valued stocks – including those with no earnings – were the strongest performers.
Industrials and materials were the weakest-performing sectors in PCM’s portion of the Fund during the fiscal year, as fears of a global trade war and slowing economic growth affected visibility in future earnings potential for many companies. The healthcare and consumer discretionary sectors were the largest contributors to performance for PCM’s portion of the Fund. Strength in the healthcare sector was broad-based with strong stock selection in medical devices,
healthcare technology, biotechnology, and pharmaceutical stocks. Increased content gains for automobile component holdings and an underweight to consumer Internet companies in PCM’s portion of the Fund primarily drove performance in consumer discretionary during the fiscal year.
A primary detractor from performance in PCM’s portion of the Fund wasInternational Game Technology PLC, one of the largest global gaming technology companies offering lottery management services, online and instant lotteries, instant ticket printing, slot machines, and interactive gaming. Despite solid fundamentals and results that consistently exceeded consensus expectations, the stock was weak during the12-month period due to fears of increasing government regulation in its gaming business in Italy. PCM added to its position on the weakness during the fiscal period as it believed these regulatory fears were exaggerated and that the stock should begin to trade more in line with positive fundamentals.
Another detractor from performance in PCM’s portion of the Fund was2U Inc., a cloud-based education software company that provides online graduate degree and short course programs to 34 universities including the University of North Carolina, Yale University, New York University, and Georgetown University. The stock was weak during the12-month period due to inconsistent execution and lowered enrollment growth estimates as a result of leadership changes at two of its largest partner universities. While PCM continues to believe that there is potential for an accelerating shift toward greater online learning from the traditionalin-classroom setting, it exited the position during the fiscal year due to concerns about visibility into future growth and the effect of rising competition.
LiveRamp Holdings Inc.was the strongest contributor to returns in PCM’s portion of the Fund during the12-month period. LiveRamp’s data onboarding platform enables highly targeted marketing across all digital applications and has benefited significantly from the continued shift of marketing spend from traditional media to online avenues. Following the divestiture of a noncore business last year, financial results were ahead of expectations and highlighted the robust growth opportunities of the newly streamlined company. Proceeds from the transaction were also deployed into a sizeable share repurchase, which further aided share gains. Despite these many positive fundamental developments, PCM believes LiveRamp remains inexpensive relative to other companies within the space and, as such, PCM continues to hold LiveRamp in its portion of the Fund.
CyberArk Software Ltd, a leading cybersecurity software company focused on the Privileged Access Management (PAM) market, also contributed to PCM’s portion of the Fund during the fiscal year. Privileged accounts maintain administrator access and have complete control of a company’s information technology infrastructure and, as
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OptimumSmall-Mid Cap Growth Fund
a result, are often targeted by cybercriminals. CyberArk is the leader in the PAM market and has greatly benefited from the competitive disruption caused by the recent acquisitions of the number two and three players in the market, in PCM’s view. Its revenues and earnings have accelerated and have consistently exceeded consensus expectations. PCM continues to hold CyberArk in its portion of the Fund and believes the company is in the early stages of capitalizing on its open-ended growth opportunity and could provide significant value to a potential strategic acquirer.
While recent market dynamics have been volatile, PCM remains disciplined and true to its time-tested strategy, which has the
potential to generate significant market outperformance. PCM’s portion of the Fund is most exposed to the technology, healthcare, and industrials sectors. Technology benefits from the strong secular trends in software and cybersecurity, while in healthcare PCM seeks to benefit from rapid innovation across medical devices, healthcare technology, and drug development. PCM’s portion of the Fund is the least exposed to the slower growing real estate and communication services sectors due to a lack of attractive secular growth ideas.
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OptimumSmall-Mid Cap Value Fund
April 9, 2019 (Unaudited)
| | | | | | |
Performance review (for the year ended March 31, 2019) | | | | | | |
OptimumSmall-Mid Cap Value Fund (Institutional Class shares)* | | | 1-year return | | | – 3.62% |
OptimumSmall-Mid Cap Value Fund (Class A shares) | | | 1-year return | | | – 3.83% |
Russell 2500™Value Index (benchmark) | | | 1-year return | | | +1.84% |
Past performance does not guarantee future results.
For complete, annualized performance for OptimumSmall-Mid Cap Value Fund, please see the table on page 35.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
The performance of Class A shares excludes the applicable sales charge. Both Institutional Class shares and Class A shares reflect the reinvestment of all distributions.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
*Total returns for the report period presented in the table differ from the returns in “Financial highlights.” The total returns presented in the above table are calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total returns presented in “Financial highlights” are calculated in the same manner, but also take into account certain adjustments that are necessary under US generally accepted accounting principles (US GAAP) required in the annual report.
Advisor
Delaware Management Company (DMC)
Sub-advisors
LSV Asset Management (LSV)
Westwood Management Corp. (Westwood)
Market overview
Volatility returned to financial markets for the Fund’s fiscal year ended March 31, 2019. The S&P 500® Index ended the12-month period up almost 10%, but it was a bumpy ride: At the end of September 2018, the index was up more than 11% but by the end of December, it was down nearly 4%.Large-cap stocks outperformed small-caps over the fiscal year: The Russell 1000® Index gained 9% while the Russell 2000® Index advanced 2%. The Russell 2500™ Index was up more than 4%.
A host of economic and geopolitical issues added to market insecurity, notably fears of a global economic slowdown, the pace of central bank interest rate hikes, and ongoing trade frictions between the United States and China. Although US economic data continued to be robust, investors started to worry that the US was late in its economic cycle. The benefits of the federal tax cuts that bolstered record corporate earnings in 2018 were expected to fade and earnings forecasts were lowered for 2019.
Federal Reserve Chairman Jerome Powell reacted to market weakness in March 2019 by indicating there would be no additional rate hikes in 2019 and just one in 2020. This dovish tone was a welcome change from Powell’s comments the previous fall, which had contributed to fourth-quarter market jitters. Finally, the fallout fromUS-China trade restrictions led US material and labor costs to begin rising and caused China’s economic activity to slow. However,
by the end of the Fund’s fiscal year, it appeared that the US and China could be nearing a trade deal.
While expectations that the Fed would hold interest rates at low levels provided a boost to the overall market, the effect was not positive for value stocks and, in particular, deep value stocks. Over the fiscal year, small- andmid-cap value stocks underperformed growth stocks: The Russell 2500 Value Index gained nearly 3% while the Russell 2500™ Growth Index gained more than 7%. For the12-month period, the utilities, technology, and real estate sectors outperformed while energy, materials, and financials lagged.
Source: Bloomberg.
Fund performance
OptimumSmall-Mid Cap Value Fund underperformed its benchmark, the Russell 2500 Value Index, for the fiscal year. LSV’s portion of the Fund trailed the benchmark as a result of its deep value bias. Poor stock and sector selection also hurt LSV’s performance. Westwood’s portion of the Fund underperformed the benchmark as weak allocation results in the healthcare and consumer discretionary sectors more than offset benefits from its strong stock selection in these sectors.
LSV
The Fed’s dovish stance in March 2019 underscored worries of a continued economic slowdown and muted inflation levels. As a result, investors rewarded expensive growth stocks in the technology and communications services sectors and broadly sought out the perceived safety of less volatile, higher yielding utilities stocks despite their rich valuations and low prospects for growth. Several companies that LSV owned in the Fund (which generated strong cash flows and earnings) were punished by the overall effect of the deep
Portfolio management reviews
OptimumSmall-Mid Cap Value Fund
value bias of LSV’s portion of the Fund detracting significantly from relative returns.
Both stock and sector selection detracted from relative performance for LSV’s portion of the Fund over the12-month period. Trade tensions and fears of an economic slowdown hurt several LSV’s holdings in more cyclical areas of the market while stock selection losses were concentrated in the industrials, technology, and financials sectors. Holdings in commodity chemicals, electronic manufacturing, as well as life and health insurance underperformed in LSV’s portion of the Fund. From a sector perspective, relative losses came from LSV’s underweight positions in the utilities and real estate sectors along with its overweight to consumer discretionary, materials, and financials, which underperformed as the US yield curve inverted in March 2019.
Because LSV’s portion of the Fund is broadly diversified, no individual name had too large of an impact on returns. For the fiscal year, the most significant detractors for LSV’s portion of the Fund included its overweight positions inCooper-Standard Holdings Inc.andUnum Group. Cooper-Standard, a global supplier of systems and components for the automotive industry, struggled during the12-month period – down roughly 60% – as the auto parts/equipment industry faced significant headwinds, including tariffs, increased raw materials costs, and growing consumer reluctance to buy cars. LSV continues to maintain a position in Cooper-Standard as it believes company fundamentals remain strong. Additionally, the company ranks highly on earnings and cash flow measures. Unum Group, a life and disability insurance company, also struggled, down 27% for the12-month period. LSV continues to hold Unum as the stock trades at what it views as attractive fundamental valuations and continues to pay a nice dividend.
Trinseo SAalso weighed on performance in LSV’s portion of the Fund. Trinseo, a synthetic rubber manufacturer, primarily of tires, faced headwinds similar to those experienced by Cooper-Standard – most notably a slowdown in the tire market.
Leading contributors for LSV’s portion of the Fund included overweight positions in medical device manufacturerInteger Holdings Corp.and electric power distributorAES Corp.Integer Holdings outperformed over the fiscal period, up more than 30%, on strong revenue growth and cash flow generated from operations. Integer also completed aspin-off of its advanced surgical and orthopedics product lines to Viant during the fiscal year. The sale proceeds were used to pay down debt; LSV sold its position in Integer Holdings during the Fund’s fiscal year. AES also outperformed during the fiscal year, returning 65%, as it benefited from healthy earnings growth and cash flow generation, strong backlog growth, reduced debt, and new long-term renewables contracts. LSV continues to maintain a position in AES.
The fiscal year was difficult for value investors and for LSV’s portion of the Fund. The companies in LSV’s portion of the Fund generated strong cash flow and earnings and in general had little deterioration in their fundamental measures, such as revenue, earnings before interest, tax, depreciation, and amortization (EBITA), and net income. Value stocks are trading at significant discounts to their growth counterparts and LSV considers its portion of the Fund well positioned given current valuations.
At the end of the fiscal year, LSV’s portion of the Fund was overweight the consumer discretionary, financials, and materials sectors while underweight the utilities, real estate, and healthcare sectors. At the industry level, LSV’s portion of the Fund was overweight insurance, specialty retail, and auto components while underweight electric utilities, equity real estate investment trusts (REITs), and banks.
Westwood
Westwood employs a consistent, disciplined approach that seeks to provide attractive risk-adjusted returns while protecting capital during unfavorable market periods. Extensive research to identify companies that it believes are attractively valued regarding future earnings and cash flow prospects, underpinned by limited downside risk due to strong fundamentals, drives Westwood’s stock selection.
Detractors in Westwood’s portion of the Fund were concentrated in energy, where a failed merger and a poor operational update weighed heavily on two stocks, while regional banks within financials were pressured first by the economic concerns and then by the potential for falling, rather than rising, interest rates going forward. Leading contributors came from a broad sector representation as the market rewarded businesses that were positioned to weather volatility with positive earnings and outlooks. Healthcare and consumer discretionary were the strongest relative performers among sectors in Westwood’s portion of the Fund.
For the fiscal year,Centennial Resource Development Inc.,Penn Virginia Corp., andWestern Alliance Bancorpdetracted from performance in Westwood’s portion of the Fund. Centennial, an independent oil producer, posted weak results on lower realized oil prices, higher noncash expenses, and higher interest costs with a challenging outlook given lower commodity prices. Westwood exited its position in Centennial during the fiscal year. Penn Virginia, an independent oil and gas company, terminated its proposed merger with Denbury Resources after shareholder pushback, causing some near-term pressure on its shares. Westwood continued to hold Penn Virginia based on a positive view of its acreage position in the Eagle Ford and future cash generation potential. Shares of Western Alliance fell as solid results were trumped by investor concerns over the economic outlook and potential yield curve inversion weighing on net interest margins. Credit remains strong at Western Alliance;
18
therefore, Westwood continues to hold shares of the company in its portion of the Fund.
Notable contributors to Westwood’s portion of the Fund wereSTAG Industrial Inc.,a REIT;OSI Systems Inc., a manufacturer of security and inspection systems; andCable One Inc., an Internet and cable service provider. STAG’s niche focus on secondary markets for its industrial properties was in strong demand and management increased its forward guidance based on the investment needed to meet that demand. OSI Systems rallied as efforts to turn around its healthcare division boosted margins. It also benefited from strong demand for its security and screening products. Cable One continued to see a shift in its mix toward high-speed data and away from video subscribers, a boost for profit margins and cash flows.
Westwood relies on its well-tested process of fundamental stock picking with a long-term view. Westwood remains attracted to fundamentally-driven, high-conviction opportunities given the uncertainty in the markets, including in areas such as industrial innovators with pricing power to offset potential inflationary pressures, growing consumer-facing brands that can better weather disruption to serve their customers, andlow-cost, high-grade energy producers as the entire energy complex appears to be shifting towards a focus on returns over growth. This underpins Westwood’s resulting positioning with overweights in industrials, materials, and energy.
Performance summaries
| | |
| Optimum Fixed Income Fund | | March 31, 2019 |
(Unaudited)
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please obtain the performance data for the most recent month end by calling 800914-0278 or visiting our website at optimummutualfunds.com/performance.
| | | | | | | | | | | | |
Fund and benchmark performance1,2 | | | | | | | | | | | | |
| Average annual total returns through March 31, 2019 | | 1 year | | | 5 years | | | 10 years | |
| | | | | | | | | | | | |
Class A (Est. Aug. 1, 2003) | | | | | | | | | | | | |
Excluding sales charge | | | +3.37% | | | | +2.14% | | | | +5.41% | |
Including sales charge | | | -1.27% | | | | +1.21% | | | | +4.92% | |
| | | | | | | | | | | | |
Class C (Est. Aug. 1, 2003) | | | | | | | | | | | | |
Excluding sales charge | | | +2.52% | | | | +1.37% | | | | +4.66% | |
Including sales charge | | | +1.52% | | | | +1.37% | | | | +4.66% | |
| | | | | | | | | | | | |
Institutional Class (Est. Aug. 1, 2003) | | | | | | | | | | | | |
Excluding sales charge | | | +3.65% | | | | +2.39% | | | | +5.72% | |
Including sales charge | | | +3.65% | | | | +2.39% | | | | +5.72% | |
| | | | | | | | | | | | |
Bloomberg Barclays US Aggregate Index | | | +4.48% | | | | +2.74% | | | | +3.77% | |
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” graph. The current expenses for each class are listed on the “Fund expense ratios” table on the next page. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
Class A shares are sold with a maximumfront-end sales charge of up to 4.50%, and have an annual distribution and service fee of up to 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that nofront-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.
Performance for Class C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
The “Fund and benchmark performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
20
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the “Fund expense ratios” table below. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding any12b-1 fees and certain other expenses) from exceeding 0.85% of the Fund’s average daily net assets from July 27, 2018 through March 31, 2019. From April 1, 2018 through July 26, 2018, the expense waiver was 0.86% of the Fund’s average daily net assets.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.
| | | | | | |
| Fund expense ratios | | Class A | | Class C | | Institutional Class |
Total annual operating expenses
(without fee waivers) | | 1.10% | | 1.85% | | 0.85% |
Net expenses
(including fee waivers, if any) | | 1.10% | | 1.85% | | 0.85% |
| Type of waiver | | Contractual | | Contractual | | Contractual |
*The aggregate contractual waiver period covering this report is from July 29, 2017 to July 29, 2019.
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.
The Fund may also be subject to prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
High yielding,non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds.
The high yield secondary market is particularly susceptible to liquidity problems when institutional investors, such as mutual funds and certain other financial institutions, temporarily stop buying bonds for regulatory, financial, or other reasons. In addition, a less liquid secondary market makes it more difficult for the Fund to obtain precise valuations of the high yield securities in its portfolio.
Securities in the lowest of the rating categories considered to be investment grade (that is, Baa or BBB) have some speculative characteristics.
This document may mention bond ratings published by nationally recognized statistical rating organizations (NRSROs) Standard & Poor’s, Moody’s Investors Service, and Fitch, Inc. For securities rated by an NRSRO other than S&P, the rating is converted to the equivalent S&P credit rating. Bonds rated AAA are rated as having the highest quality and are generally considered to have the lowest degree of investment risk. Bonds rated AA are considered to be of high quality, but with a slightly higher degree of risk than bonds rated AAA. Bonds rated A are considered to have many favourable investment qualities, though they are somewhat more susceptible to adverse economic conditions. Bonds rated BBB are believed to be of medium-grade quality and generally riskier over the long term.
Bonds rated BB, B, and CCC are regarded as having significant speculative characteristics, with BB indicating the least degree of speculation of the three.
If and when the Fund invests in forward foreign currency contracts or uses other investments to hedge against currency risks, the Fund will be subject to special risks, including counterparty risk.
The Fund may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivatives transaction depends upon the counterparties’ ability to fulfill their contractual obligations.
Portfolio turnover is a measure of how frequently the managers buy and sell assets within a fund over a particular period. It is usually reported for a12-month time period.
Investments in collateralized loan obligations (CLO) may involve risks. CLOs are securities backed by a pool of debt, oftenlow-rated corporate loans. Investors receive scheduled debt payments from the underlying loans but assume most of the risk in the event that borrowers default.
Performance summaries
Optimum Fixed Income Fund
Performance of a $10,000 Investment1
Average annual total returns from March 31, 2009 through March 31, 2019
1The “Performance of $10,000 investment” graph assumes $10,000 invested in Class A and Institutional Class shares of the Fund on March 31, 2009, and includes the effect of a 4.50%front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 21. Please note additional details on pages 20 through 22.
The graph also assumes $10,000 invested in the Bloomberg Barclays US Aggregate Index as of March 31, 2009. The Bloomberg Barclays US Aggregate Index is a broad composite that tracks the investment grade domestic bond market.
The ICE BofAML US Dollar3-Month Deposit Offered Rate Constant Maturity Index, mentioned on page 2, represents the London interbank offered rate (LIBOR) with a constant3-month average maturity. LIBOR is a composite of the rates of interest at which banks borrow from one another in the London market, and it is a widely used benchmark for short-term interest rates.
The ICE BofAML US Treasury Index, mentioned on page 4, tracks the performance of US dollar-denominated sovereign debt publicly issued by the US government in its domestic market. Qualifying securities must have at least one year remaining term to final maturity, a fixed coupon schedule and a minimum amount outstanding of $1 billion. Qualifying securities must have at least 18 months to final maturity at the time of issuance.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
| | | | | | | | |
Stock symbols and CUSIP numbers | | | | | | | | |
| | | Nasdaq symbols | | | | | CUSIPs |
Class A | | OAFIX | | | | | | 246118681 |
Class C | | OCFIX | | | | | | 246118665 |
Institutional Class | | OIFIX | | | | | | 246118657 |
22
| | |
Optimum International Fund | | March 31, 2019 |
| |
(Unaudited) | | |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please obtain the performance data for the most recent month end by calling 800914-0278 or visiting our website at optimummutualfunds.com/performance.
| | | | | | | | | | | | | | | | |
| Fund and benchmark performance1,2 | | | | | | | | | | | | |
| Average annual total returns through March 31, 2019 | | 1 year | | | 5 years | | | 10 years | | | | |
| | | | | | | | | | | | | |
Class A (Est. Aug. 1, 2003) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | – 5.53% | | | | +2.56% | | | | +8.29% | | | | | |
Including sales charge | | | – 10.95% | | | | +1.35% | | | | +7.65% | | | | | |
| | | | | | | | | | | | | |
Class C (Est. Aug. 1, 2003) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | – 6.27% | | | | +1.78% | | | | +7.53% | | | | | |
Including sales charge | | | – 7.14% | | | | +1.78% | | | | +7.53% | | | | | |
| | | | | | | | | | | | | |
Institutional Class (Est. Aug. 1, 2003) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | – 5.28% | | | | +2.80% | | | | +8.62% | | | | | |
Including sales charge | | | – 5.28% | | | | +2.80% | | | | +8.62% | | | | | |
| | | | | | | | | | | | | |
MSCI ACWI ex USA Index (net) | | | – 4.22% | | | | +2.57% | | | | +8.85% | | | | | |
| | | | | | | | | | | | | |
MSCI ACWI ex USA Index (gross) | | | – 3.74% | | | | +3.05% | | | | +9.35% | | | | | |
| | | | | | | | | | | | | |
MSCI EAFE Index (net) | | | – 3.71% | | | | +2.33% | | | | +8.96% | | | | | |
| | | | | | | | | | | | | |
MSCI EAFE Index (gross) | | | – 3.22% | | | | +2.81% | | | | +9.47% | | | | | |
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” graph. The current expenses for each class are listed on the “Fund expense ratios” table on the next page. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
Class A shares are sold with a maximumfront-end sales charge of up to 5.75%, and have an annual distribution and service fee of up to 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that nofront-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.
Performance for Class C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
The “Fund and benchmark performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
2 The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the “Fund expense ratios” table on the next page. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding any12b-1 fees and certain other expenses) from exceeding 1.12% of the Fund’s average daily net assets from July 27, 2018 through March 31, 2019. From April 1, 2018 through July 26, 2018, the expense waiver was 1.13% of the Fund’s average daily net assets.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.
Performance summaries
Optimum International Fund
| | | | | | |
Fund expense ratios | | Class A | | Class C | | Institutional Class |
Total annual operating expenses
(without fee waivers) | | 1.36% | | 2.11% | | 1.11% |
Net expenses
(including fee waivers, if any) | | 1.36% | | 2.11% | | 1.11% |
Type of waiver | | Contractual | | Contractual | | Contractual |
*The contractual waiver period is from July 29, 2017 to July 29, 2019.
International investments entail risks not ordinarily associated with US investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.
The Fund may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivatives transaction depends upon the counterparties’ ability to fulfill their contractual obligations.
There is no guarantee that dividend-paying stocks will continue to pay dividends.
Performance of a $10,000 Investment1
Average annual total returns from March 31, 2009 through March 31, 2019
1The “Performance of $10,000 investment” graph assumes $10,000 invested in Class A and Institutional Class shares of the Fund on March 31, 2009, and includes the effect of a 5.75%front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 24. Please note additional details on pages 23 through 25.
24
The graph also assumes $10,000 invested in the MSCI EAFE Index and the MSCI ACWI ex USA Index as of March 31, 2009.
The MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization weighted index designed to measure equity market performance of developed markets, excluding the United States and Canada. Index “gross” return approximates the maximum possible dividend reinvestment. Index “net” return approximates the minimum possible dividend reinvestment, after deduction of withholding tax at the highest possible rate.
The MSCI ACWI ex USA Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance across developed and emerging markets worldwide, excluding the United States. Index “gross” return approximates the maximum possible dividend reinvestment. Index “net” return approximates the minimum possible dividend reinvestment, after deduction of withholding tax at the highest possible rate.
Effective Jan. 19, 2018, the MSCI ACWI ex USA Index replaced the MSCI EAFE Index in order to reflect the Fund’s ability to invest in emerging market securities.
The MSCI Emerging Markets Index, mentioned on page 5, is a free float-adjusted market capitalization index designed to measure equity market performance across emerging market countries worldwide. Index “net” return approximates the minimum possible dividend reinvestment, after deduction of withholding tax at the highest possible rate.
The MSCI China Index, mentioned on page 5, captures large- andmid-cap representation across China H shares, B shares, Red chips, P chips, and foreign listings (for example, ADRs), covering about 85% of this China equity universe.
The Russell 1000 Index, mentioned on page 5, measures the performance of thelarge-cap segment of the US equity universe.
The Russell 2000 Index, mentioned on page 5, measures the performance of thesmall-cap segment of the US equity universe.
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
Gross domestic product is a measure of all goods and services produced by a nation in a year.
Theprice-to-earnings ratio (P/E ratio) is a valuation ratio of a company’s current share price compared to its earnings per share. Generally, a high P/E ratio means that investors are anticipating higher growth in the future.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
| | | | | | | | | | |
Stock symbols and CUSIP numbers | | | | | | | | | | |
| | | Nasdaq symbols | | | CUSIPs | | | |
Class A | | | OAIEX | | | | 246118731 | | | |
Class C | | | OCIEX | | | | 246118715 | | | |
Institutional Class | | | OOIIX | | | | 246118699 | | | |
Performance summaries
| | |
| Optimum Large Cap Growth Fund | | March 31, 2019 |
| (Unaudited) | | |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please obtain the performance data for the most recent month end by calling 800914-0278 or visiting our website at optimummutualfunds.com/performance.
| | | | | | | | | | | | | | | | |
| Fund and benchmark performance1,2 | | | | | | | | | | | | |
| Average annual total returns through March 31, 2019 | | 1 year | | | 5 years | | | 10 years | | | | |
| | | | | | | | | | | | | |
Class A (Est. Aug. 1, 2003) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +11.60% | | | | +12.79% | | | | +16.86% | | | | | |
Including sales charge | | | +5.18% | | | | +11.46% | | | | +16.16% | | | | | |
| | | | | | | | | | | | | |
Class C (Est. Aug. 1, 2003) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +10.74% | | | | +11.95% | | | | +16.04% | | | | | |
Including sales charge | | | +9.81% | | | | +11.95% | | | | +16.04% | | | | | |
| | | | | | | | | | | | | |
Institutional Class (Est. Aug. 1, 2003) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +11.86% | | | | +13.08% | | | | +17.21% | | | | | |
Including sales charge | | | +11.86% | | | | +13.08% | | | | +17.21% | | | | | |
| | | | | | | | | | | | | |
Russell 1000 Growth Index | | | +12.75% | | | | +13.50% | | | | +17.52% | | | | | |
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” graph. The current expenses for each class are listed on the “Fund expense ratios” table on the next page. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
Class A shares are sold with a maximumfront-end sales charge of up to 5.75%, and have an annual distribution and service fee of up to 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that nofront-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.
Performance for Class C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
The “Fund and benchmark performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the “Fund expense ratios” table on the next page. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding any12b-1 fees and certain other expenses) from exceeding 1.02% of the Fund’s average daily net assets from July 27, 2018 through March 31, 2019. From April 1, 2018 through July 26, 2018, the expense waiver was 1.02% of the Fund’s average daily net assets.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.
26
| | | | | | |
Fund expense ratios | | Class A | | Class C | | Institutional Class |
Total annual operating expenses
(without fee waivers) | | 1.26% | | 2.01% | | 1.01% |
Net expenses
(including fee waivers, if any) | | 1.26% | | 2.01% | | 1.01% |
Type of waiver | | Contractual | | Contractual | | Contractual |
*The aggregate contractual waiver period covering this report is from July 29, 2017 to July 29, 2019.
Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.
REIT investments are subject to many of the risks associated with direct real estate ownership, including changes in economic conditions, credit risk, and interest rate fluctuations.
Performance of a $10,000 Investment1
Average annual total returns from March 31, 2009 through March 31, 2019
1The “Performance of $10,000 investment” graph assumes $10,000 invested in Class A and Institutional Class shares of the Fund on March 31, 2009, and includes the effect of a 5.75%front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table above. Please note additional details on pages 26 through 28.
The graph also assumes $10,000 invested in the Russell 1000 Growth Index as of March 31, 2009. The Russell 1000 Growth Index measures the performance of thelarge-cap growth segment of the US equity universe. It includes those Russell 1000 companies with higherprice-to-book ratios and higher forecasted growth values.
The S&P 500 Index, mentioned on page 8, measures the performance of 500 mostlylarge-cap stocks weighted by market value, and is often used to represent performance of the US stock market.
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.Past performance is not a guarantee of future results.
Performance summaries
Optimum Large Cap Growth Fund
Performance of other Fund classes will vary due to different charges and expenses.
| | | | | | | | | | |
| Stock symbols and CUSIP numbers | | | | | | | | |
| | | Nasdaq symbols | | CUSIPs | | | | |
Class A | | OALGX | | | 246118707 | | | | | |
Class C | | OCLGX | | | 246118889 | | | | | |
Institutional Class | | OILGX | | | 246118871 | | | | | |
28
| | |
| Optimum Large Cap Value Fund | | March 31, 2019 |
| (Unaudited) | | |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please obtain the performance data for the most recent month end by calling 800914-0278 or visiting our website at optimummutualfunds.com/performance.
| | | | | | | | | | | | | | | | |
| Fund and benchmark performance1,2 | | | | | | | | | | | | |
| Average annual total returns through March 31, 2019 | | 1 year | | | 5 years | | | 10 years | | | | |
| | | | | | | | | | | | | |
Class A (Est. Aug. 1, 2003) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +3.79% | | | | +5.46% | | | | +12.40% | | | | | |
Including sales charge | | | -2.19% | | | | +4.21% | | | | +11.74% | | | | | |
| | | | | | | | | | | | | |
Class C (Est. Aug. 1, 2003) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +3.05% | | | | +4.67% | | | | +11.61% | | | | | |
Including sales charge | | | +2.05% | | | | +4.67% | | | | +11.61% | | | | | |
| | | | | | | | | | | | | |
Institutional Class (Est. Aug. 1, 2003) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +4.08% | | | | +5.72% | | | | +12.73% | | | | | |
Including sales charge | | | +4.08% | | | | +5.72% | | | | +12.73% | | | | | |
| | | | | | | | | | | | | | | | |
Russell 1000 Value Index | | | +5.67% | | | | +7.72% | | | | +14.52% | | | | | |
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” graph. The current expenses for each class are listed on the “Fund expense ratios” table on the next page. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
Class A shares are sold with a maximumfront-end sales charge of up to 5.75%, and have an annual distribution and service fee of up to 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that nofront-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.
Performance for Class C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
The “Fund and benchmark performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the “Fund expense ratios” table on the next page. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding any12b-1 fees and certain other expenses) from exceeding 0.97% of the Fund’s average daily net assets from July 27, 2018 through March 31, 2019. From April 1, 2018 through July 26, 2018, the expense waiver was 0.98% of the Fund’s average daily net assets.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.
Performance summaries
Optimum Large Cap Value Fund
| | | | | | |
Fund expense ratios | | Class A | | Class C | | Institutional Class |
Total annual operating expenses
(without fee waivers) | | 1.21% | | 1.96% | | 0.96% |
Net expenses
(including fee waivers, if any) | | 1.21% | | 1.96% | | 0.96% |
Type of waiver | | Contractual | | Contractual | | Contractual |
*The contractual waiver period is from July 29, 2017 to July 29, 2019.
Performance of a $10,000 Investment1
Average annual total returns from March 31, 2009 through March 31, 2019
1The “Performance of $10,000 investment” graph assumes $10,000 invested in Class A and Institutional Class shares of the Fund on March 31, 2009, and includes the effect of a 5.75%front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table on page 30. Please note additional details on pages 29 through 31.
The graph also assumes $10,000 invested in the Russell 1000 Value Index as of March 31, 2009. The Russell 1000 Value Index measures the performance of thelarge-cap value segment of the US equity universe. It includes those Russell 1000 companies with lowerprice-to-book ratios and lower forecasted growth values.
The S&P 500 Index, mentioned on page 11, measures the performance of 500 mostlylarge-cap stocks weighted by market value, and is often used to represent performance of the US stock market.
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
30
| | | | | | | | | | |
Stock symbols and CUSIP numbers | | | | | | | | | | |
| | | Nasdaq symbols | | | CUSIPs | | | |
Class A | | | OALVX | | | | 246118863 | | | |
Class C | | | OCLVX | | | | 246118848 | | | |
Institutional Class | | | OILVX | | | | 246118830 | | | |
Performance summaries
| | |
| OptimumSmall-Mid Cap Growth Fund | | March 31, 2019 |
(Unaudited) | | |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please obtain the performance data for the most recent month end by calling 800914-0278 or visiting our website at optimummutualfunds.com/performance.
| | | | | | | | | | | | | | | | |
Fund and benchmark performance1,2 | | | | | | | | | | | | | | | | |
| Average annual total returns through March 31, 2019 | | 1 year | | | 5 years | | | 10 years | | | | |
| | | | | | | | | | | | | | | | |
Class A (Est. Aug. 1, 2003) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +8.69% | | | | +7.86% | | | | +15.21% | | | | | |
Including sales charge | | | +2.41% | | | | +6.59% | | | | +14.54% | | | | | |
| | | | | | | | | | | | | | | | |
Class C (Est. Aug. 1, 2003) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +7.81% | | | | +7.04% | | | | +14.39% | | | | | |
Including sales charge | | | +6.99% | | | | +7.04% | | | | +14.39% | | | | | |
| | | | | | | | | | | | | | | | |
Institutional Class (Est. Aug. 1, 2003) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | +8.97% | | | | +8.13% | | | | +15.54% | | | | | |
Including sales charge | | | +8.97% | | | | +8.13% | | | | +15.54% | | | | | |
| | | | | | | | | | | | | | | | |
Russell 2500 Growth Index | | | +7.54% | | | | +9.72% | | | | +17.50% | | | | | |
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” graph. The current expenses for each class are listed on the “Fund expense ratios” table on the next page. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
Class A shares are sold with a maximumfront-end sales charge of up to 5.75%, and have an annual distribution and service fee of up to 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that nofront-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.
Performance for Class C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
The “Fund and benchmark performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the “Fund expense ratios” table on the next page. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding any12b-1 fees and certain other expenses) from exceeding 1.29% of the Fund’s average daily net assets from July 27, 2018 through March 31, 2019. From April 1, 2018 through July 26, 2018, the expense waiver was 1.29% of the Fund’s average daily net assets.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.
32
| | | | | | |
Fund expense ratios | | Class A | | Class C | | Institutional Class |
Total annual operating expenses
(without fee waivers) | | 1.63% | | 2.38% | | 1.38% |
Net expenses
(including fee waivers, if any) | | 1.54% | | 2.29% | | 1.29% |
Type of waiver | | Contractual | | Contractual | | Contractual |
*The contractual waiver period is from July 29, 2017 to July 29, 2019.
Investments in small and/ormedium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.
Performance of a $10,000 Investment1
Average annual total returns from March 31, 2009 through March 31, 2019
1The “Performance of $10,000 investment” graph assumes $10,000 invested in Class A and Institutional Class shares of the Fund on March 31, 2009, and includes the effect of a 5.75%front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table above. Please note additional details on pages 32 through 34.
The graph also assumes $10,000 invested in the Russell 2500 Growth Index as of March 31, 2009. The Russell 2500 Growth Index measures the performance of the small- tomid-cap growth segment of the US equity universe. It includes those Russell 2500 companies with higherprice-to-book ratios and higher forecasted growth values.
Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
Performance summaries
OptimumSmall-Mid Cap Growth Fund
| | | | | | | | | | |
| Stock symbols and CUSIP numbers | | | | | | | | |
| | | Nasdaq symbols | | CUSIPs | | | | |
Class A | | OASGX | | | 246118822 | | | | | |
Class C | | OCSGX | | | 246118798 | | | | | |
Institutional Class | | OISGX | | | 246118780 | | | | | |
34
OptimumSmall-Mid Cap Value Fund
| | |
(Unaudited) | | March 31, 2019 |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please obtain the performance data for the most recent month end by calling 800914-0278 or visiting our website at optimummutualfunds.com/performance.
| | | | | | | | | | | | | | | | |
| Fund and benchmark performance1,2 | | | | | | | | | | | | |
| Average annual total returns through March 31, 2019 | | 1 year | | | 5 years | | | 10 years | | | | |
| | | | | | | | | | | | | | | | |
Class A (Est. Aug. 1, 2003) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | – 3.83% | | | | +1.06% | | | | +12.53% | | | | | |
Including sales charge | | | – 9.34% | | | | – 0.14% | | | | +11.86% | | | | | |
| | | | | | | | | | | | | | | | |
Class C (Est. Aug. 1, 2003) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | – 4.50% | | | | +0.31% | | | | +11.73% | | | | | |
Including sales charge | | | – 5.38% | | | | +0.31% | | | | +11.73% | | | | | |
| | | | | | | | | | | | | | | | |
Institutional Class (Est. Aug. 1, 2003) | | | | | | | | | | | | | | | | |
Excluding sales charge | | | – 3.62% | | | | +1.30% | | | | +12.86% | | | | | |
Including sales charge | | | – 3.62% | | | | +1.30% | | | | +12.86% | | | | | |
| | | | | | | | | | | | | | | | |
Russell 2500 Value Index | | | +1.84% | | | | +6.02% | | | | +15.03% | | | | | |
1Returns reflect the reinvestment of all distributions and are presented both with and without the applicable sales charges described below. Returns do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Expense limitations were in effect for certain classes during some or all of the periods shown in the “Fund and benchmark performance” graph. The current expenses for each class are listed on the “Fund expense ratios” table on the next page. Performance would have been lower had expense limitations not been in effect.
Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors. In addition, Institutional Class shares pay no distribution and service fee.
Class A shares are sold with a maximumfront-end sales charge of up to 5.75%, and have an annual distribution and service fee of up to 0.25% of average daily net assets. Performance for Class A shares, excluding sales charges, assumes that nofront-end sales charge applied.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.
Performance for Class C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
The “Fund and benchmark performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
2The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the “Fund expense ratios” table on the next page. Delaware Management Company has agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses (excluding any12b-1 fees and certain other expenses) from exceeding 1.21% of the Fund’s average daily net assets from July 27, 2018 through March 31, 2019. From April 1, 2018 through July 28, 2018, the expense waiver was 1.22% of the Fund’s average daily net assets.* Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.
Performance summaries
OptimumSmall-Mid Cap Value Fund
| | | | | | |
Fund expense ratios | | Class A | | Class C | | Institutional Class |
Total annual operating expenses
(without fee waivers) | | 1.54% | | 2.29% | | 1.29% |
Net expenses
(including fee waivers, if any) | | 1.46% | | 2.21% | | 1.21% |
| Type of waiver | | Contractual | | Contractual | | Contractual |
*The contractual waiver period is from July 29, 2017 to July 29, 2019.
Investments in small and/ormedium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.
Performance of a $10,000 Investment1
Average annual total returns from March 31, 2009 through March 31, 2019
1The “Performance of $10,000 investment” graph assumes $10,000 invested in Class A and Institutional Class shares of the Fund on March 31, 2009, and includes the effect of a 5.75%front-end sales charge (for Class A shares) and the reinvestment of all distributions. The graph does not reflect the deduction of taxes the shareholders would pay on Fund distributions or redemptions of Fund shares. Expense limitations were in effect for some or all of the periods shown. Performance would have been lower had expense limitations not been in effect. Current expenses are listed in the “Fund expense ratios” table above. Please note additional details on pages 35 through 37.
The graph also assumes $10,000 invested in the Russell 2500 Value Index as of March 31, 2009. The Russell 2500 Value Index measures the performance of the small- tomid-cap value segment of the US equity universe. It includes those Russell 2500 companies with lowerprice-to-book ratios and lower forecasted growth values.
The S&P 500 Index, mentioned on page 17, measures the performance of 500 mostlylarge-cap stocks weighted by market value, and is often used to represent performance of the US stock market.
The Russell 1000 Index, mentioned on page 17, measures the performance of thelarge-cap segment of the US equity universe.
The Russell 2000 Index, mentioned on page 17, measures the performance of thesmall-cap segment of the US equity universe.
The Russell 2500 Index measures the performance of the small- tomid-cap segment of the US equity universe. The Russell 2500 Index is a subset of the Russell 3000® Index, representing approximately 2,500 of the smallest securities based on a combination of their market cap and current index membership.
36
The Russell 2500 Growth Index, mentioned on page 17, measures the performance of the small- tomid-cap growth segment of the US equity universe. It includes those Russell 2500 companies with higherprice-to-book ratios and higher forecasted growth values.
Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
| | | | | | | | |
Stock symbols and CUSIP numbers | | | | | | | | |
| | | Nasdaq symbols | | | CUSIPs | |
Class A | | | OASVX | | | | 246118772 | |
Class C | | | OCSVX | | | | 246118756 | |
Institutional Class | | | OISVX | | | | 246118749 | |
Disclosure of Fund expenses
For thesix-month period from October 1, 2018 to March 31, 2019 (Unaudited)
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and service(12b-1) fees; and other Fund expenses. These following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entiresix-month period from Oct. 1, 2018 to March 31, 2019.
Actual Expenses
The first section of the tables shown, “Actual Fund return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second section of the tables shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore,
the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Each Fund’s expenses shown in the tables reflect fee waivers in effect and assume reinvestment of all dividends and distributions.
| | | | | | | | | | | | | | | | |
| Optimum Fixed Income Fund | | | | | | | | | |
| Expense analysis of an investment of $1,000 | | |
| | | | | |
| | | | | | | | | | | | Expenses | | |
| | | | | | | | | | | | Paid | | |
| | | Beginning | | | Ending | | | | | | During | | |
| | | Account | | | Account | | | Annualized | | | Period | | |
| | | Value | | | Value | | | Expense | | | 10/1/18 to | | |
| | | 10/1/18 | | | 3/31/19 | | | Ratio | | | 3/31/19* | | |
Actual Fund return† | | |
Class A | | $ | 1,000.00 | | | $ | 1,040.40 | | | | 1.07% | | | $5.44 | | |
Class C | | | 1,000.00 | | | | 1,035.20 | | | | 1.82% | | | 9.23 | | |
Institutional Class | | | 1,000.00 | | | | 1,041.00 | | | | 0.82% | | | 4.17 | | |
Hypothetical 5% return(5% return before expenses) | | |
Class A | | $ | 1,000.00 | | | $ | 1,019.60 | | | | 1.07% | | | $5.39 | | |
Class C | | | 1,000.00 | | | | 1,015.86 | | | | 1.82% | | | 9.15 | | |
Institutional Class | | | 1,000.00 | | | | 1,020.84 | | | | 0.82% | | | 4.13 | | |
| | |
Optimum International Fund | | | | | |
Expense analysis of an investment of $1,000 | | |
| | | | | |
| | | | | | | | | | | | Expenses | | |
| | | | | | | | | | | | Paid | | |
| | | Beginning | | | Ending | | | | | | During | | |
| | | Account | | | Account | | | Annualized | | | Period | | |
| | | Value | | | Value | | | Expense | | | 10/1/18 to | | |
| | | 10/1/18 | | | 3/31/19 | | | Ratio | | | 3/31/19* | | |
Actual Fund return† | | |
Class A | | $ | 1,000.00 | | | $ | 962.70 | | | | 1.39% | | | $ 6.80 | | |
Class C | | | 1,000.00 | | | | 959.10 | | | | 2.14% | | | 10.45 | | |
Institutional Class | | | 1,000.00 | | | | 963.70 | | | | 1.14% | | | 5.58 | | |
Hypothetical 5% return(5% return before expenses) | | |
Class A | | $ | 1,000.00 | | | $ | 1,018.00 | | | | 1.39% | | | $ 6.99 | | |
Class C | | | 1,000.00 | | | | 1,014.26 | | | | 2.14% | | | 10.75 | | |
Institutional Class | | | 1,000.00 | | | | 1,019.25 | | | | 1.14% | | | 5.74 | | |
38
Optimum Large Cap Growth Fund
Expense analysis of an investment of $1,000
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Expenses | |
| | | | | | | | | | | | | | | Paid | |
| | | Beginning | | | | Ending | | | | | | | | During | |
| | | Account | | | | Account | | | | Annualized | | | | Period | |
| | | Value | | | | Value | | | | Expense | | | | 10/1/18 to | |
| | | | 10/1/18 | | | | 3/31/19 | | | | Ratio | | | | 3/31/19* | |
Actual Fund return† | | | | | | | | | | | | | |
Class A | | | $1,000.00 | | | | $ 996.20 | | | | 1.25% | | | | $ 6.22 | |
Class C | | | 1,000.00 | | | | 992.70 | | | | 2.00% | | | | 9.94 | |
Institutional Class | | | 1,000.00 | | | | 997.50 | | | | 1.00% | | | | 4.98 | |
Hypothetical 5% return(5% return before expenses) | |
Class A | | | $1,000.00 | | | | $1,018.70 | | | | 1.25% | | | | $ 6.29 | |
Class C | | | 1,000.00 | | | | 1,014.96 | | | | 2.00% | | | | 10.05 | |
Institutional Class | | | 1,000.00 | | | | 1,019.95 | | | | 1.00% | | | | 5.04 | |
|
Optimum Large Cap Value Fund Expense analysis of an investment of $1,000 | |
| | | | | | | | | | | | Expenses | |
| | | | | | | | | | | | | | | Paid | |
| | | Beginning | | | | Ending | | | | | | | | During | |
| | | Account | | | | Account | | | | Annualized | | | | Period | |
| | | Value | | | | Value | | | | Expense | | | | 10/1/18 to | |
| | | | 10/1/18 | | | | 3/31/19 | | | | Ratio | | | | 3/31/19* | |
| Actual Fund return† | |
Class A | | | $1,000.00 | | | | $ 988.70 | | | | 1.20% | | | | $5.95 | |
Class C | | | 1,000.00 | | | | 985.20 | | | | 1.95% | | | | 9.65 | |
Institutional Class | | | 1,000.00 | | | | 990.40 | | | | 0.95% | | | | 4.71 | |
Hypothetical 5% return(5% return before expenses) | |
Class A | | | $1,000.00 | | | | $1,018.95 | | | | 1.20% | | | | $6.04 | |
Class C | | | 1,000.00 | | | | 1,015.21 | | | | 1.95% | | | | 9.80 | |
Institutional Class | | | 1,000.00 | | | | 1,020.19 | | | | 0.95% | | | | 4.78 | |
OptimumSmall-Mid Cap Growth Fund
Expense analysis of an investment of $1,000
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Expenses | |
| | | | | | | | | | | | | | | Paid | |
| | | Beginning | | | | Ending | | | | | | | | During | |
| | | Account | | | | Account | | | | Annualized | | | | Period | |
| | | Value | | | | Value | | | | Expense | | | | 10/1/18 to | |
| | | | 10/1/18 | | | | 3/31/19 | | | | Ratio | | | | 3/31/19* | |
Actual Fund return† | | | | | | | | | | | | | |
Class A | | | $1,000.00 | | | | $ 920.70 | | | | 1.54% | | | | $ 7.37 | |
Class C | | | 1,000.00 | | | | 917.00 | | | | 2.29% | | | | 10.94 | |
Institutional Class | | | 1,000.00 | | | | 922.20 | | | | 1.29% | | | | 6.18 | |
Hypothetical 5% return(5% return before expenses) | |
Class A | | | $1,000.00 | | | | $1,017.25 | | | | 1.54% | | | | $ 7.75 | |
Class C | | | 1,000.00 | | | | 1,013.51 | | | | 2.29% | | | | 11.50 | |
Institutional Class | | | 1,000.00 | | | | 1,018.50 | | | | 1.29% | | | | 6.49 | |
|
OptimumSmall-Mid Cap Value Fund Expense analysis of an investment of $ 1,000 | |
| |
| | | | Expenses | |
| | | | | | | | | | | | | | | Paid | |
| | | Beginning | | | | Ending | | | | | | | | During | |
| | | Account | | | | Account | | | | Annualized | | | | Period | |
| | | Value | | | | Value | | | | Expense | | | | 10/1/18 to | |
| | | | 10/1/18 | | | | 3/31/19 | | | | Ratio | | | | 3/31/19* | |
| Actual Fund return† | |
Class A | | | $1,000.00 | | | | $ 919.90 | | | | 1.46% | | | | $ 6.99 | |
Class C | | | 1,000.00 | | | | 916.80 | | | | 2.21% | | | | 10.56 | |
Institutional Class | | | 1,000.00 | | | | 921.10 | | | | 1.21% | | | | 5.80 | |
Hypothetical 5% return(5% return before expenses) | |
Class A | | | $1,000.00 | | | | $1,017.65 | | | | 1.46% | | | | $ 7.34 | |
Class C | | | 1,000.00 | | | | 1,013.91 | | | | 2.21% | | | | 11.10 | |
Institutional Class | | | 1,000.00 | | | | 1,018.90 | | | | 1.21% | | | | 6.09 | |
* “Expenses Paid During Period” are equal to the relevant Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect theone-half year period).
†Because actual returns reflect only the most recentsix-month period, the returns shown may differ significantly from fiscal year returns.
Security type / sector allocations
Optimum Fixed Income Fund
As of March 31, 2019 (Unaudited)
Sector designations may be different than the sector designations presented in other Fund materials. The sector designations may represent the investment manager orsub-advisor’s internal sector classifications, which may result in the sector designations for one fund being different than another fund’s sector designations.
| | | | | | | | |
| | | Percentage | | | | |
| Security type / sector | | of net assets | | | | |
Agency Asset-Backed Securities | | | 0.05% | | | | | |
Agency Collateralized Mortgage Obligations | | | 4.00% | | | | | |
Agency Commercial Mortgage-Backed Securities | | | 0.74% | | | | | |
Agency Mortgage-Backed Securities | | | 19.45% | | | | | |
Agency Obligation | | | 0.10% | | | | | |
Collateralized Debt Obligations | | | 3.73% | | | | | |
Convertible Bonds | | | 1.38% | | | | | |
Corporate Bonds | | | 36.99% | | | | | |
Banking | | | 13.29% | | | | | |
Basic Industry | | | 1.49% | | | | | |
Brokerage | | | 0.32% | | | | | |
Capital Goods | | | 1.27% | | | | | |
Communications | | | 3.66% | | | | | |
Consumer Cyclical | | | 2.35% | | | | | |
ConsumerNon-Cyclical | | | 3.12% | | | | | |
Energy | | | 3.21% | | | | | |
Finance Companies | | | 1.33% | | | | | |
Insurance | | | 1.00% | | | | | |
Natural Gas | | | 0.19% | | | | | |
Real Estate Investment Trusts | | | 0.82% | | | | | |
Technology | | | 1.19% | | | | | |
Transportation | | | 0.72% | | | | | |
Utilities | | | 3.03% | | | | | |
Municipal Bonds | | | 0.68% | | | | | |
| | | | | | | | |
| | | Percentage | | | |
| Security type / sector | | of net assets | | | |
Non-Agency Asset-Backed Securities | | | 3.30% | | | | | |
Non-Agency Collateralized Mortgage Obligations | | | 1.74% | | | | | |
Non-Agency Commercial
Mortgage-Backed Securities | | | 3.51% | | | | | |
Regional Bonds | | | 0.32% | | | | | |
Loan Agreements | | | 3.99% | | | | | |
Sovereign Bonds | | | 3.66% | | | | | |
Supranational Banks | | | 0.62% | | | | | |
US Treasury Obligations | | | 26.28% | | | | | |
Common Stock | | | 0.00% | | | | | |
Convertible Preferred Stock | | | 0.29% | | | | | |
Preferred Stock | | | 0.09% | | | | | |
Options Purchased | | | 0.00% | | | | | |
Short-Term Investments | | | 8.21% | | | | | |
Total Value of Securities Before Options Written | | | 119.13% | | | | | |
Options Written | | | 0.00% | | | | | |
Liabilities Net of Receivables and Other Assets | | | (19.13%) | | | | | |
Total Net Assets | | | 100.00% | | | | | |
40
Security type / country and sector allocations
Optimum International Fund
As of March 31, 2019 (Unaudited)
Sector designations may be different than the sector designations presented in other Fund materials. The sector designations may represent the investment manager orsub-advisor’s internal sector classifications, which may result in the sector designations for one fund being different than another fund’s sector designations.
| | | | | | | | |
| . | | Percentage | | | | |
| Security type / country | | of net assets | | | | |
Common Stock by Country | | | 98.22% | | | | | |
Australia | | | 3.80% | | | | | |
Austria | | | 1.90% | | | | | |
Brazil | | | 3.27% | | | | | |
Cambodia | | | 0.07% | | | | | |
Canada | | | 7.44% | | | | | |
Chile | | | 1.09% | | | | | |
China/Hong Kong | | | 10.81% | | | | | |
Colombia | | | 0.83% | | | | | |
Czech Republic | | | 0.36% | | | | | |
Denmark | | | 1.19% | | | | | |
Finland | | | 0.53% | | | | | |
France | | | 4.76% | | | | | |
Germany | | | 3.96% | | | | | |
Greece | | | 0.02% | | | | | |
Hungary | | | 0.31% | | | | | |
India | | | 2.70% | | | | | |
Indonesia | | | 0.49% | | | | | |
Israel | | | 3.89% | | | | | |
Italy | | | 1.30% | | | | | |
Japan | | | 10.44% | | | | | |
Malaysia | | | 0.09% | | | | | |
Mexico | | | 1.30% | | | | | |
Netherlands | | | 4.79% | | | | | |
New Zealand | | | 0.05% | | | | | |
Norway | | | 2.39% | | | | | |
Poland | | | 0.17% | | | | | |
Portugal | | | 0.01% | | | | | |
Republic of Korea | | | 3.57% | | | | | |
Russia | | | 0.06% | | | | | |
Singapore | | | 1.34% | | | | | |
South Africa | | | 0.47% | | | | | |
Spain | | | 2.48% | | | | | |
Sweden | | | 0.53% | | | | | |
| | | | | | | | |
| . | | Percentage | | | | |
| Security type / country | | of net assets | | | | |
Switzerland | | | 4.17% | | | | | |
Taiwan | | | 2.69% | | | | | |
Thailand | | | 1.82% | | | | | |
Turkey | | | 0.56% | | | | | |
United Kingdom | | | 6.53% | | | | | |
United States | | | 6.04% | | | | | |
Preferred Stock | | | 0.34% | | | | | |
Short-Term Investments | | | 0.66% | | | | | |
Securities Lending Collateral | | | 1.49% | | | | | |
Total Value of Securities | | | 100.71% | | | | | |
Obligation to Return Securities Lending Collateral | | | (1.49%) | | | | | |
Receivables and Other Assets Net of Liabilities | | | 0.78% | | | | | |
Total Net Assets | | | 100.00% | | | | | |
| | |
| | | Percentage | | | | |
| Common stock by sector | | of net assets | | | | |
Communication Services | | | 5.57% | | | | | |
Consumer Discretionary | | | 7.21% | | | | | |
Consumer Staples | | | 5.46% | | | | | |
Energy | | | 8.28% | | | | | |
Financials | | | 23.14% | | | | | |
Healthcare | | | 14.14% | | | | | |
Industrials | | | 7.04% | | | | | |
Information Technology | | | 11.86% | | | | | |
Materials | | | 9.71% | | | | | |
Real Estate | | | 2.01% | | | | | |
Utilities | | | 3.80% | | | | | |
Total | | | 98.22% | | | | | |
Security type / sector allocations and top 10 equity holdings
Sector designations may be different than the sector designations presented in other Fund materials. The sector designations may represent the investment manager orsub-advisor’s internal sector classifications, which may result in the sector designations for one fund being different than another fund’s sector designations.
Optimum Large Cap Growth Fund
As of March 31, 2019 (Unaudited)
| | | | | | |
| | | Percentage | | | |
| Security type / sector | | of net assets | | | |
Common Stock² | | | 97.11% | | | |
Communication Services | | | 15.34% | | | |
Consumer Discretionary | | | 17.18% | | | |
Consumer Staples | | | 3.45% | | | |
Energy | | | 0.84% | | | |
Financials | | | 4.59% | | | |
Healthcare | | | 13.83% | | | |
Industrials | | | 8.88% | | | |
Information Technology1 | | | 29.14% | | | |
Materials | | | 1.95% | | | |
Real Estate | | | 1.11% | | | |
Utilities | | | 0.80% | | | |
Convertible Preferred Stock | | | 0.57% | | | |
Short-Term Investments | | | 2.48% | | | |
Total Value of Securities | | | 100.16% | | | |
Liabilities Net of Receivables and Other Assets | | | (0.16%) | | | |
Total Net Assets | | | 100.00% | | | |
| ² | Narrow industries are utilized for compliance purposes for diversification whereas broad sectors are used for financial reporting. |
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| | | | | | |
| | | Percentage | | | |
| Top 10 equity holdings | | of net assets | | | |
Amazon.com | | | 7.41% | | | |
Microsoft | | | 4.82% | | | |
Facebook Class A | | | 4.77% | | | |
Visa Class A | | | 3.70% | | | |
Alphabet Class C | | | 3.02% | | | |
UnitedHealth Group | | | 2.52% | | | |
Alphabet Class A | | | 2.17% | | | |
Boeing | | | 1.99% | | | |
Alibaba Group Holding ADR | | | 1.98% | | | |
Walt Disney | | | 1.70% | | | |
Optimum Large Cap Value Fund
As of March 31, 2019 (Unaudited)
| | | | | | |
| | | Percentage | | | |
| Security type / sector | | of net assets | | | |
Common Stock | | | 98.23% | | | |
Communication Services | | | 7.39% | | | |
Consumer Discretionary | | | 2.15% | | | |
Consumer Staples | | | 7.40% | | | |
Energy | | | 7.13% | | | |
Financials | | | 24.34% | | | |
Healthcare | | | 16.25% | | | |
Industrials | | | 13.77% | | | |
Information Technology | | | 9.74% | | | |
Materials | | | 2.56% | | | |
Real Estate | | | 2.71% | | | |
Utilities | | | 4.79% | | | |
Short-Term Investments | | | 1.49% | | | |
Total Value of Securities Before Security Sold Short | | | 99.72% | | | |
Security Sold Short | | | (0.03%) | | | |
Receivables and Other Assets Net of Liabilities | | | 0.31% | | | |
Total Net Assets | | | 100.00% | | | |
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| | | | | | |
| | | Percentage | | | |
| Top 10 equity holdings | | of net assets | | | |
JPMorgan Chase & Co. | | | 3.90% | | | |
Pfizer | | | 2.67% | | | |
Comcast Class A | | | 2.65% | | | |
Medtronic (Ireland) | | | 2.31% | | | |
Verizon Communications | | | 1.83% | | | |
Johnson & Johnson | | | 1.80% | | | |
Cisco Systems | | | 1.77% | | | |
Chevron | | | 1.77% | | | |
Merck & Co. | | | 1.71% | | | |
Accenture Class A (Ireland) | | | 1.58% | | | |
42
Sector designations may be different than the sector designations presented in other Fund materials. The sector designations may represent the investment manager orsub-advisor’s internal sector classifications, which may result in the sector designations for one fund being different than another fund’s sector designations.
OptimumSmall-Mid Cap Growth Fund
As of March 31, 2019 (Unaudited)
| | | | | | |
| | | Percentage | | | |
| Security type / sector | | of net assets | | | |
Common Stock² | | | 97.85% | | | |
Communication Services | | | 3.22% | | | |
Consumer Discretionary | | | 13.59% | | | |
Consumer Staples | | | 3.11% | | | |
Energy | | | 1.66% | | | |
Financials | | | 6.83% | | | |
Healthcare | | | 20.55% | | | |
Industrials | | | 13.64% | | | |
Information Technology2 | | | 32.73% | | | |
Materials | | | 2.17% | | | |
Real Estate | | | 0.35% | | | |
Convertible Preferred Stock | | | 0.52% | | | |
Short-Term Investments | | | 3.00% | | | |
Total Value of Securities | | | 101.37% | | | |
Liabilities Net of Receivables and Other Assets | | | (1.37%) | | | |
Total Net Assets | | | 100.00% | | | |
| ² | Narrow industries are utilized for compliance purposes for diversification whereas broad sectors are used for financial reporting. |
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| | | | | | |
| | | Percentage | | | |
| Top 10 equity holdings | | of net assets | | | |
Zendesk | | 2.71% | | | | |
Zebra Technologies Class A | | 2.19% | | | | |
DexCom | | 1.93% | | | | |
RingCentral Class A | | 1.69% | | | | |
Wright Medical Group (Netherlands) | | 1.65% | | | | |
Array BioPharma | | 1.59% | | | | |
IAC/InterActiveCorp | | 1.56% | | | | |
Five9 | | 1.52% | | | | |
Chegg | | 1.42% | | | | |
Tandem Diabetes Care | | 1.41% | | | | |
OptimumSmall-Mid Cap Value Fund
As of March 31, 2019 (Unaudited)
| | | | | | |
| | | Percentage | | | |
| Security type / sector | | of net assets | | | |
Common Stock | | | 98.21% | | | |
Communication Services | | | 2.02% | | | |
Consumer Discretionary | | | 9.93% | | | |
Consumer Staples | | | 3.17% | | | |
Energy | | | 4.60% | | | |
Financials | | | 21.31% | | | |
Healthcare | | | 5.55% | | | |
Industrials | | | 14.78% | | | |
Information Technology | | | 11.59% | | | |
Materials | | | 7.87% | | | |
Real Estate | | | 13.30% | | | |
Utilities | | | 4.09% | | | |
Short-Term Investments | | | 2.11% | | | |
Total Value of Securities | | | 100.32% | | | |
Liabilities Net of Receivables and Other Assets | | | (0.32%) | | | |
Total Net Assets | | | 100.00% | | | |
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
| | | | | | |
| | | Percentage | | | |
| Top 10 equity holdings | | of net assets | | | |
Zions Bancorp | | 1.84% | | | | |
Everest Re Group (Bermuda) | | 1.39% | | | | |
Huntington Ingalls Industries | | 1.34% | | | | |
Alliant Energy | | 1.26% | | | | |
WPX Energy | | 1.26% | | | | |
IDACORP | | 1.22% | | | | |
Physicians Realty Trust | | 1.21% | | | | |
STAG Industrial | | 1.21% | | | | |
Western Alliance Bancorp | | 1.11% | | | | |
Chemical Financial | | 1.10% | | | | |
Security type / sector allocations and top 10 equity holdings
1To monitor compliance with Optimum Large Cap Growth Fund’s concentration guidelines as described in the Fund’s Prospectus and Statement of Additional Information, the Information Technology sector (as disclosed herein for financial reporting purposes) is subdivided into a variety of “industries” (in accordance with the requirements of the Investment Company Act of 1940 (1940 Act)). The Information Technology sector for this Fund consisted of Commercial Services, Computers, Internet, Semiconductors, and Software. As of March 31, 2019, such amounts, as percentage of total net assets, were 7.70%, 2.05%, 1.56%, 2.98%, and 14.85%, respectively. The percentage in any such single industry will comply with the Fund’s concentration policy even if the percentages in the Information Technology sector for financial reporting purposes may exceed 25%.
2To monitor compliance with OptimumSmall-Mid Cap Growth Fund’s concentration guidelines as described in the Fund’s Prospectus and Statement of Additional Information, the Information Technology (as disclosed herein for financial reporting purposes) are subdivided into a variety of “industries” (in accordance with the requirements of the 1940 Act). The Information Technology sector consisted of Commercial Services, Computers, Electronics, Internet, Miscellaneous Manufacture, Office Equipment, Semiconductors, Software, and Telecommunications. As of March 31, 2019, such amounts, as percentage of total net assets, were 3.55%, 2.78%, 1.65%, 7.63%, 0.43%, 2.19%, 5.00%, 8.77%, and 0.73%, respectively. The percentage in any such single industry will comply with the Fund’s concentration policy even if the percentages in the Healthcare and Information Technology sector for financial reporting purposes may exceed 25%.
44
Schedules of investments
Optimum Fixed Income Fund
March 31, 2019
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Agency Asset-Backed Securities – 0.05% | |
| |
SLM Student Loan Trust | | | | | |
Series2003-11 A6 144A 3.161% (LIBOR03M + 0.55%, Floor 0.29%) 12/15/25 #● | | | 279,315 | | | $ | 280,339 | |
Series2008-9 A 4.271% (LIBOR03M + 1.50%) 4/25/23● | | | 951,327 | | | | 962,288 | |
| | | | | | | | |
Total Agency Asset-Backed
Securities(cost $1,235,792) | | | | 1,242,627 | |
| | | | | | | | |
|
| |
Agency Collateralized Mortgage Obligations – 4.00% | |
| |
Fannie Mae Connecticut Avenue Securities | | | | | | | | |
Series2016-C03 1M1 4.486% (LIBOR01M + 2.00%) 10/25/28● | | | 31,330 | | | | 31,568 | |
Series2016-C04 1M1 3.936% (LIBOR01M + 1.45%) 1/25/29● | | | 16,533 | | | | 16,595 | |
Series2017-C01 1M1 3.786% (LIBOR01M + 1.30%) 7/25/29● | | | 15,263 | | | | 15,323 | |
Series2017-C04 2M2 5.336% (LIBOR01M + 2.85%) 11/25/29● | | | 420,000 | | | | 435,441 | |
Series2018-C02 2M2 4.686% (LIBOR01M + 2.20%, Floor 2.20%) 8/25/30● | | | 630,000 | | | | 628,150 | |
Series2018-C03 1M2 4.636% (LIBOR01M + 2.15%, Floor 2.15%) 10/25/30● | | | 555,000 | | | | 554,241 | |
Series2018-C05 1M2 4.836% (LIBOR01M + 2.35%, Floor 2.35%) 1/25/31● | | | 545,000 | | | | 547,263 | |
Fannie Mae Grantor Trust | | | | | |
Series1999-T2 A1
7.50% 1/19/39● | | | 6,676 | | | | 7,208 | |
Series2002-T4 A3
7.50% 12/25/41 | | | 24,341 | | | | 27,841 | |
Series2004-T1 1A2 6.50% 1/25/44 | | | 8,161 | | | | 9,219 | |
Fannie Mae Interest Strip | | | | | |
Series 417 C24 3.50% 12/25/42S | | | 51,158 | | | | 9,027 | |
Series 418 C12 3.00% 8/25/33S | | | 2,108,684 | | | | 253,339 | |
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Agency Collateralized Mortgage Obligations(continued) | |
| |
Fannie Mae Interest Strip | | | | | |
Series 419 C3 3.00% 11/25/43S | | | 484,661 | | | $ | 83,147 | |
Fannie Mae REMIC Trust | | | | | |
Series2004-W4 A5 5.50% 6/25/34 | | | 176,805 | | | | 178,165 | |
Series2004-W11 1A2 6.50% 5/25/44 | | | 43,316 | | | | 48,822 | |
Series2004-W15 1A1 6.00% 8/25/44 | | | 35,312 | | | | 38,928 | |
Fannie Mae REMICs | | | | | |
Series1999-19 PH 6.00% 5/25/29 | | | 70,742 | | | | 76,998 | |
Series2001-14 Z 6.00% 5/25/31 | | | 4,146 | | | | 4,452 | |
Series2007-30 OE
1.833% 4/25/37W | | | 2,196,012 | | | | 1,868,209 | |
Series2008-15 SB 4.115% (6.60% minus LIBOR01M, Cap 6.60%) 8/25/36S● | | | 104,255 | | | | 17,212 | |
Series2008-24 ZA 5.00% 4/25/38 | | | 9,821,855 | | | | 10,638,332 | |
Series2009-2 AS
3.215% (5.70% minus LIBOR01M, Cap 5.70%) 2/25/39S● | | | 634,476 | | | | 56,880 | |
Series2009-68 SA
4.265% (6.75% minus LIBOR01M, Cap 6.75%) 9/25/39S● | | | 191,436 | | | | 28,462 | |
Series2009-94 AC 5.00% 11/25/39 | | | 124,548 | | | | 136,799 | |
Series2011-118 DC
4.00% 11/25/41 | | | 953,771 | | | | 992,663 | |
Series2012-98 MI 3.00% 8/25/31S | | | 1,119,582 | | | | 112,321 | |
Series2012-99 AI 3.50% 5/25/39S | | | 509,295 | | | | 40,811 | |
Series2012-115 MI
3.50% 3/25/42S | | | 211,541 | | | | 22,225 | |
Series2012-120 CI 3.50% 12/25/31S | | | 95,047 | | | | 7,385 | |
Series2012-121 ID 3.00% 11/25/27S | | | 39,691 | | | | 3,504 | |
Series2012-128 IC 3.00% 11/25/32S | | | 1,822,495 | | | | 229,945 | |
Series2012-132 AI 3.00% 12/25/27S | | | 1,209,827 | | | | 97,855 | |
Series2012-137 WI
3.50% 12/25/32S | | | 299,801 | | | | 43,534 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Agency Collateralized Mortgage Obligations(continued) | |
| |
Fannie Mae REMICs | | | | | | | | |
Series2012-139 NS 4.215% (6.70% minus LIBOR01M, Cap
6.70%) 12/25/42S● | | | 2,440,879 | | | $ | 531,684 | |
Series2012-146 IO 3.50% 1/25/43S | | | 1,641,560 | | | | 315,495 | |
Series2012-149 IC 3.50% 1/25/28S | | | 1,124,546 | | | | 108,551 | |
Series2013-1 YI 3.00% 2/25/33S | | | 1,465,999 | | | | 189,802 | |
Series2013-7 EI 3.00% 10/25/40S | | | 624,011 | | | | 67,579 | |
Series2013-26 ID 3.00% 4/25/33S | | | 689,885 | | | | 93,186 | |
Series2013-35 IB 3.00% 4/25/33S | | | 1,053,254 | | | | 134,857 | |
Series2013-35 IG 3.00% 4/25/28S | | | 733,442 | | | | 61,867 | |
Series2013-38 AI 3.00% 4/25/33S | | | 664,681 | | | | 79,608 | |
Series2013-41 HI 3.00% 2/25/33S | | | 1,157,264 | | | | 121,563 | |
Series2013-44 DI 3.00% 5/25/33S | | | 1,987,449 | | | | 269,035 | |
Series2013-45 PI 3.00% 5/25/33S | | | 500,051 | | | | 67,339 | |
Series2013-55 AI 3.00% 6/25/33S | | | 1,511,498 | | | | 184,558 | |
Series2013-60 CI 3.00% 6/25/31S | | | 425,297 | | | | 31,090 | |
Series2013-69 IJ 3.00% 7/25/33S | | | 589,498 | | | | 78,743 | |
Series2013-103 SK 3.435% (5.92% minus LIBOR01M, Cap 5.92%) 10/25/43S● | | | 1,546,994 | | | | 298,139 | |
Series2014-63 KI 3.50% 11/25/33S | | | 5,597 | | | | 533 | |
Series2015-43 PZ 3.50% 6/25/45 | | | 480,211 | | | | 495,657 | |
Series2015-89 AZ 3.50% 12/25/45 | | | 164,039 | | | | 173,602 | |
Series2016-6 AI 3.50% 4/25/34S | | | 873,458 | | | | 100,806 | |
Series2016-30 CI 3.00% 5/25/36S | | | 738,464 | | | | 98,273 | |
Series2016-33 DI 3.50% 6/25/36S | | | 1,836,459 | | | | 261,839 | |
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Agency Collateralized Mortgage Obligations(continued) | |
| |
Fannie Mae REMICs | | | | | | | | |
Series2016-36 SB
3.515% (6.00% minus LIBOR01M, Cap 6.00%) 3/25/43S● | | | 595,429 | | | $ | 70,873 | |
Series2016-40 IO 3.50% 7/25/36S | | | 239,852 | | | | 36,050 | |
Series2016-50 IB 3.00% 2/25/46S | | | 119,879 | | | | 17,028 | |
Series2016-51 LI 3.00% 8/25/46S | | | 2,410,807 | | | | 325,644 | |
Series2016-62 SA
3.515% (6.00% minus LIBOR01M, Cap 6.00%) 9/25/46S● | | | 1,896,540 | | | | 380,728 | |
Series2016-64 CI 3.50% 7/25/43S | | | 865,636 | | | | 101,048 | |
Series2016-71 PI 3.00% 10/25/46S | | | 1,195,487 | | | | 158,022 | |
Series2016-74 GS
3.515% (6.00% minus LIBOR01M, Cap 6.00%) 10/25/46S● | | | 1,256,709 | | | | 245,418 | |
Series2016-99 DI 3.50% 1/25/46S | | | 565,232 | | | | 94,244 | |
Series2016-105 SA
3.515% (6.00% minus LIBOR01M, Cap 6.00%) 1/25/47S● | | | 1,186,467 | | | | 214,173 | |
Series2017-1 EI 3.50% 9/25/35S | | | 392,529 | | | | 56,981 | |
Series2017-4 AI 3.50% 5/25/41S | | | 892,917 | | | | 93,454 | |
Series2017-4 BI 3.50% 5/25/41S | | | 534,173 | | | | 64,630 | |
Series2017-6 NI 3.50% 3/25/46S | | | 109,979 | | | | 18,533 | |
Series2017-11 EI 3.00% 3/25/42S | | | 1,655,506 | | | | 210,838 | |
Series2017-12 JI 3.50% 5/25/40S | | | 465,821 | | | | 46,522 | |
Series2017-15 NZ 3.50% 3/25/47 | | | 134,441 | | | | 134,773 | |
Series2017-16 SM 3.565% (6.05% minus LIBOR01M, Cap 6.05%) 3/25/47S● | | | 2,008,990 | | | | 358,748 | |
Series2017-16 WI 3.00% 1/25/45S | | | 456,369 | | | | 53,482 | |
Series2017-25 BL 3.00% 4/25/47 | | | 157,000 | | | | 155,885 | |
46
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Agency Collateralized Mortgage Obligations(continued) | |
| |
Fannie Mae REMICs | | | | | |
Series2017-40 GZ 3.50% 5/25/47 | | | 353,932 | | | $ | 353,543 | |
Series2017-77 HZ 3.50% 10/25/47 | | | 502,673 | | | | 500,612 | |
Series2017-88 EI 3.00% 11/25/47S | | | 1,155,801 | | | | 156,935 | |
Series2017-88 IE 3.00% 11/25/47S | | | 851,415 | | | | 113,816 | |
Series2017-94 CZ 3.50% 11/25/47 | | | 315,227 | | | | 313,071 | |
Series2017-95 FA 2.859% (LIBOR01M + 0.35%, Floor 0.35%) 11/25/47● | | | 655,983 | | | | 653,111 | |
Series2017-99 IE 3.00% 12/25/47S | | | 867,028 | | | | 117,443 | |
Freddie Mac REMICs | | | | | |
Series 2165 PE 6.00% 6/15/29 | | | 61,300 | | | | 67,058 | |
Series 3143 BC 5.50% 2/15/36 | | | 1,525,479 | | | | 1,686,258 | |
Series 3289 SA
4.266% (6.75% minus LIBOR01M, Cap 6.75%) 3/15/37S● | | | 638,084 | | | | 116,407 | |
Series 4050 EI 4.00% 2/15/39S | | | 801,843 | | | | 54,883 | |
Series 4109 AI 3.00% 7/15/31S | | | 2,083,124 | | | | 180,560 | |
Series 4120 MI 3.00% 10/15/32S | | | 318,870 | | | | 44,416 | |
Series 4135 AI 3.50% 11/15/42S | | | 1,545,592 | | | | 279,075 | |
Series 4146 IA 3.50% 12/15/32S | | | 934,989 | | | | 140,088 | |
Series 4150 UI 3.50% 8/15/32S | | | 1,995,865 | | | | 182,582 | |
Series 4161 IM 3.50% 2/15/43S | | | 283,854 | | | | 56,321 | |
Series 4181 DI 2.50% 3/15/33S | | | 601,196 | | | | 70,185 | |
Series 4184 GS
3.636% (6.12% minus LIBOR01M, Cap 6.12%) 3/15/43S● | | | 984,991 | | | | 213,498 | |
Series 4185 LI 3.00% 3/15/33S | | | 492,483 | | | | 67,479 | |
Series 4186 IB 3.00% 3/15/33S | | | 845,884 | | | | 106,555 | |
Series 4188 JI 3.00% 4/15/33S | | | 1,177,094 | | | | 129,489 | |
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Agency Collateralized Mortgage Obligations(continued) | |
| |
Freddie Mac REMICs | | | | | | | | |
Series 4191 CI 3.00% 4/15/33S | | | 199,493 | | | $ | 26,489 | |
Series 4342 CI 3.00% 11/15/33S | | | 351,873 | | | | 39,600 | |
Series 4453 DI 3.50% 11/15/33S | | | 413,581 | | | | 41,045 | |
Series 4494 SA
3.696% (6.18% minus LIBOR01M, Cap 6.18%) 7/15/45S● | | | 247,899 | | | | 47,299 | |
Series 4504 IO 3.50% 5/15/42S | | | 403,185 | | | | 37,096 | |
Series 4527 CI 3.50% 2/15/44S | | | 1,211,008 | | | | 181,877 | |
Series 4543 HI 3.00% 4/15/44S | | | 504,765 | | | | 74,531 | |
Series 4580 MI 3.50% 2/15/43S | | | 69,545 | | | | 8,390 | |
Series 4610 IB 3.00% 6/15/41S | | | 3,831,415 | | | | 369,723 | |
Series 4618 SA
3.516% (6.00% minus LIBOR01M, Cap 6.00%) 9/15/46S● | | | 589,754 | | | | 122,290 | |
Series 4625 BI 3.50% 6/15/46S | | | 1,787,344 | | | | 319,020 | |
Series 4627 PI 3.50% 5/15/44S | | | 1,569,829 | | | | 183,444 | |
Series 4644 GI 3.50% 5/15/40S | | | 655,350 | | | | 71,907 | |
Series 4648 SA
3.516% (6.00% minus LIBOR01M, Cap 6.00%) 1/15/47S● | | | 1,330,197 | | | | 252,656 | |
Series 4655 WI 3.50% 8/15/43S | | | 701,723 | | | | 86,102 | |
Series 4657 PS
3.516% (6.00% minus LIBOR01M, Cap 6.00%) 2/15/47S● | | | 1,478,169 | | | | 276,747 | |
Series 4660 GI 3.00% 8/15/43S | | | 430,735 | | | | 58,246 | |
Series 4663 AI 3.00% 3/15/42S | | | 1,083,630 | | | | 132,735 | |
Series 4663 HZ 3.50% 3/15/47 | | | 164,077 | | | | 164,279 | |
Series 4665 NI 3.50% 7/15/41S | | | 2,686,650 | | | | 271,847 | |
Series 4667 CI 3.50% 7/15/40S | | | 75,888 | | | | 6,146 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal amount° | | | Value
(US $) | |
| |
Agency Collateralized Mortgage Obligations (continued) | |
| |
Freddie Mac REMICs | | | | | |
Series 4667 LI 3.50% 10/15/43S | | | 353,182 | | | $ | 45,141 | |
Series 4669 QI 3.50% 6/15/41S | | | 204,540 | | | | 22,403 | |
Series 4673 WI 3.50% 9/15/43S | | | 786,169 | | | | 93,951 | |
Series 4674 GI 3.50% 10/15/40S | | | 69,940 | | | | 5,773 | |
Series 4676 KZ 2.50% 7/15/45 | | | 351,425 | | | | 316,341 | |
Series 4690 WI 3.50% 12/15/43S | | | 1,012,484 | | | | 140,120 | |
Series 4691 LI 3.50% 1/15/41S | | | 682,044 | | | | 62,150 | |
Series 4693 EI 3.50% 8/15/42S | | | 489,991 | | | | 59,383 | |
Series 4703 CI 3.50% 7/15/42S | | | 1,456,349 | | | | 158,289 | |
Freddie Mac Strips | | | | | | | | |
Series 304 C38 3.50% 12/15/27S | | | 606,992 | | | | 50,524 | |
Series 319 S2 3.516% (6.00% minus LIBOR01M, Cap 6.00%) 11/15/43S● | | | 586,963 | | | | 113,002 | |
Freddie Mac Structured Agency
Credit Risk Debt Notes | |
Series 2017-DNA1 M2 5.736% (LIBOR01M + 3.25%, Floor 3.25%) 7/25/29● | | | 750,000 | | | | 804,824 | |
Series 2017-DNA3 M2 4.986% (LIBOR01M + 2.50%) 3/25/30● | | | 315,000 | | | | 322,577 | |
Series 2017-HQA3 M2 4.836% (LIBOR01M + 2.35%) 4/25/30● | | | 790,000 | | | | 801,352 | |
Series 2018-HQA1 M2 4.786% (LIBOR01M + 2.30%) 9/25/30● | | | 955,000 | | | | 955,897 | |
Freddie Mac Structured Pass
Through Certificates | |
SeriesT-54 2A 6.50% 2/25/43◆ | | | 13,292 | | | | 15,416 | |
SeriesT-58 2A 6.50% 9/25/43◆ | | | 6,324 | | | | 7,273 | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
Agency Collateralized Mortgage Obligations (continued) | |
| |
GNMA | | | | | | | | |
Series2008-65 SB 3.512% (6.00% minus LIBOR01M, Cap 6.00%) 8/20/38S● | | | 593,818 | | | $ | 66,155 | |
Series2009-2 SE 3.332% (5.82% minus LIBOR01M, Cap 5.82%) 1/20/39S● | | | 1,817,186 | | | | 226,340 | |
Series2011-157 SG 4.112% (6.60% minus LIBOR01M, Cap 6.60%) 12/20/41S● | | | 870,033 | | | | 176,666 | |
Series2011-H21 FT 3.29% (H15T1Y + 0.70%, Cap 15.25%, Floor 0.70%) 10/20/61● | | | 7,756,132 | | | | 7,825,929 | |
Series2011-H23 FA 3.209% (LIBOR01M + 0.70%, Cap 11.00%, Floor 0.70%) 10/20/61● | | | 5,182,646 | | | | 5,207,322 | |
Series2012-61 PI 3.00% 4/20/39S | | | 48,487 | | | | 2,313 | |
Series2012-108 KI
4.00% 8/16/42S | | | 1,773,144 | | | | 327,137 | |
Series2012-H08 FB 3.109% (LIBOR01M + 0.60%, Cap 11.00%, Floor 0.60%) 3/20/62● | |
| 910,249
|
| | | 912,276 | |
Series2012-H18 NA 3.029% (LIBOR01M + 0.52%, Cap 10.50%, Floor 0.52%) 8/20/62● | | | 517,445 | | | | 517,669 | |
Series2012-H29 SA 3.024% (LIBOR01M + 0.515%, Cap 12.00%, Floor 0.52%) 10/20/62● | | | 4,352,791 | | | | 4,355,763 | |
Series2013-113 LY 3.00% 5/20/43 | | | 173,000 | | | | 169,199 | |
Series2015-44 AI
3.00% 8/20/41S | | | 59,382 | | | | 5,587 | |
Series2015-74 CI
3.00% 10/16/39S | | | 963,345 | | | | 105,898 | |
Series2015-111 IH 3.50% 8/20/45S | | | 1,366,866 | | | | 142,311 | |
Series2015-142 AI
4.00% 2/20/44S | | | 265,912 | | | | 25,911 | |
Series2015-H10 FA 3.109% (LIBOR01M + 0.60%, Cap 7.50%) 4/20/65● | | | 13,365,097 | | | | 13,352,454 | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
Agency Collateralized Mortgage Obligations(continued) | |
| |
GNMA | | | | | | | | |
Series2015-H11 FC
3.059% (LIBOR01M + 0.55%, Cap 7.50%, Floor 0.55%) 5/20/65● | | | 1,663,725 | | | $ | 1,658,981 | |
Series2015-H12 FB
3.109% (LIBOR01M + 0.60%, Cap 7.50%, Floor 0.60%) 5/20/65● | | | 6,960,158 | | | | 6,953,901 | |
Series2015-H20 FB
3.109% (LIBOR01M + 0.60%, Cap 7.50%, Floor 0.60%) 8/20/65● | | | 1,814,074 | | | | 1,812,324 | |
Series2015-H30 FD
3.109% (LIBOR01M + 0.60%, Cap 11.00%, Floor 0.60%) 10/20/65● | | | 136,863 | | | | 137,229 | |
Series2016-75 JI 3.00% 9/20/43S | | | 3,451,269 | | | | 353,861 | |
Series2016-89 QS
3.562% (6.05% minus LIBOR01M, Cap 6.05%) 7/20/46S● | | | 959,384 | | | | 206,884 | |
Series2016-108 SK
3.562% (6.05% minus LIBOR01M, Cap 6.05%) 8/20/46S● | | | 1,523,585 | | | | 320,386 | |
Series2016-118 ES
3.612% (6.10% minus LIBOR01M, Cap 6.10%) 9/20/46S● | | | 980,367 | | | | 188,466 | |
Series2016-120 IA 3.00% 2/20/46S | | | 132,923 | | | | 16,119 | |
Series2016-126 NS
3.612% (6.10% minus LIBOR01M, Cap 6.10%) 9/20/46S● | | | 1,056,533 | | | | 202,364 | |
Series2016-156 PB 2.00% 11/20/46 | | | 362,000 | | | | 304,282 | |
Series2016-159 MI 3.00% 3/20/46S | | | 96,933 | | | | 12,683 | |
Series2016-160 GS
3.612% (6.10% minus LIBOR01M, Cap 6.10%) 11/20/46S● | | | 2,896,095 | | | | 626,264 | |
Series2016-163 XI 3.00% 10/20/46S | | | 1,392,121 | | | | 164,046 | |
Series2016-171 IO 3.00% 7/20/44S | | | 2,146,537 | | | | 214,078 | |
Series2016-H06 FD
3.429% (LIBOR01M + 0.92%, Cap 7.50%, Floor 0.92%) 7/20/65● | | | 1,821,127 | | | | 1,841,196 | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
Agency Collateralized Mortgage Obligations(continued) | |
| |
GNMA | | | | | | | | |
Series2017-11 IM 3.00% 5/20/42S | | | 2,811,835 | | | $ | 230,426 | |
Series2017-18 QI 4.00% 3/16/41S | | | 984,577 | | | | 121,449 | |
Series2017-18 QS
3.618% (6.10% minus LIBOR01M, Cap 6.10%) 2/16/47S● | | | 1,218,745 | | | | 217,998 | |
Series2017-34 DY 3.50% 3/20/47 | | | 230,000 | | | | 235,176 | |
Series2017-56 JZ 3.00% 4/20/47 | | | 301,846 | | | | 280,528 | |
Series2017-101 AI 4.00% 7/20/47S | | | 774,446 | | | | 112,939 | |
Series2017-101 TI 4.00% 3/20/44S | | | 1,153,791 | | | | 126,898 | |
Series2017-107 QZ 3.00% 8/20/45 | | | 228,112 | | | | 211,880 | |
Series2017-113 LB 3.00% 7/20/47 | | | 595,000 | | | | 565,637 | |
Series2017-121 IL 3.00% 2/20/42S | | | 87,963 | | | | 7,986 | |
Series2017-130 YJ 2.50% 8/20/47 | | | 270,000 | | | | 255,220 | |
Series2017-134 ES
3.712% (6.20% minus LIBOR01M, Cap 6.20%) 9/20/47S● | | | 774,443 | | | | 139,297 | |
Series2017-134 KI 4.00% 5/20/44S | | | 982,935 | | | | 132,986 | |
Series2017-134 SD
3.712% (6.20% minus LIBOR01M, Cap 6.20%) 9/20/47S● | | | 4,554,465 | | | | 871,582 | |
Series2017-141 JS
3.712% (6.20% minus LIBOR01M, Cap 6.20%) 9/20/47S● | | | 1,201,071 | | | | 239,740 | |
Series2017-144 EI 3.00% 12/20/44S | | | 1,674,267 | | | | 168,488 | |
Series2017-163 ZK 3.50% 11/20/47 | | | 3,460,132 | | | | 3,449,920 | |
Series2017-174 HI 3.00% 7/20/45S | | | 1,543,495 | | | | 149,369 | |
Series2018-1 ST
3.712% (6.20% minus LIBOR01M, Cap 6.20%) 1/20/48S● | | | 2,578,954 | | | | 500,920 | |
Series2018-8 VZ 3.00% 3/20/47 | | | 455,653 | | | | 421,093 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
Agency Collateralized Mortgage Obligations(continued) | |
| |
GNMA | | | | | | | | |
Series2018-11 AI 3.00% 1/20/46S | | | 1,012,513 | | | $ | 107,200 | |
Series2018-13 PZ 3.00% 1/20/48 | | | 227,826 | | | | 214,240 | |
Series2018-14 ZE 3.50% 1/20/48 | | | 124,994 | | | | 122,414 | |
Series2018-24 HZ 3.00% 2/20/48 | | | 115,695 | | | | 106,842 | |
Series2018-34 TY 3.50% 3/20/48 | | | 196,000 | | | | 200,154 | |
Series2018-37 SA
3.712% (6.20% minus LIBOR01M, Cap 6.20%) 3/20/48S● | | | 867,848 | | | | 174,374 | |
Series2018-46 AS
3.712% (6.20% minus LIBOR01M, Cap 6.20%) 3/20/48S● | | | 3,097,662 | | | | 663,338 | |
| | | | | | | | |
Total Agency Collateralized
Mortgage Obligations
(cost $95,879,871) | | | | 94,672,102 | |
| | | | | | | | |
| | | | | | | | |
| |
Agency Commercial Mortgage-Backed
Securities – 0.74% | |
| |
Freddie Mac Multifamily | | | | | | | | |
Structured Pass Through Certificates
Series K058 A2
2.653% 8/25/26◆ | | | 685,000 | | | | 677,926 | |
Series X3FX A2FX 3.00% 6/25/27◆ | | | 1,070,000 | | | | 1,063,365 | |
FREMF Mortgage Trust | | | | | | | | |
Series2011-K10 B 144A 4.623% 11/25/49 #● | | | 550,000 | | | | 561,658 | |
Series2011-K15 B 144A 4.949% 8/25/44 #● | | | 75,000 | | | | 78,143 | |
Series2012-K18 B 144A 4.256% 1/25/45 #● | | | 1,000,000 | | | | 1,033,442 | |
Series2012-K22 B 144A 3.687% 8/25/45 #● | | | 665,000 | | | | 679,295 | |
Series2012-K23 B 144A 3.656% 10/25/45 #● | | | 1,500,000 | | | | 1,535,485 | |
Series2013-K24 B 144A 3.502% 11/25/45 #● | | | 3,675,000 | | | | 3,727,522 | |
Series2013-K25 C 144A 3.623% 11/25/45 #● | | | 500,000 | | | | 502,789 | |
Series2013-K33 B 144A 3.50% 8/25/46 #● | | | 505,000 | | | | 510,636 | |
Series 2013-K712 B 144A 3.359% 5/25/45 #● | | | 470,000 | | | | 469,694 | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
Agency Commercial Mortgage-Backed Securities(continued) | |
| |
FREMF Mortgage Trust | | | | | | | | |
Series 2013-K713 B 144A 3.155% 4/25/46 #● | | | 285,000 | | | $ | 285,155 | |
Series 2013-K713 C 144A 3.155% 4/25/46 #● | | | 945,000 | | | | 942,956 | |
Series 2014-K716 B 144A 3.949% 8/25/47 #● | | | 500,000 | | | | 510,052 | |
Series 2014-K717 B 144A 3.63% 11/25/47 #● | | | 1,225,000 | | | | 1,237,951 | |
Series 2014-K717 C 144A 3.63% 11/25/47 #● | | | 1,290,000 | | | | 1,297,271 | |
Series2015-K49 B 144A 3.721% 10/25/48 #● | | | 840,000 | | | | 844,062 | |
Series 2015-K721 C 144A 3.565% 11/25/47 #● | | | 475,000 | | | | 466,328 | |
Series2016-K53 B 144A 4.019% 3/25/49 #● | | | 280,000 | | | | 285,775 | |
Series 2016-K722 B 144A 3.841% 7/25/49 #● | | | 425,000 | | | | 426,986 | |
Series2017-K71 B 144A 3.753% 11/25/50 #● | | | 470,000 | | | | 469,408 | |
| | | | | | | | |
Total Agency Commercial
Mortgage-Backed Securities
(cost $17,475,357) | | | | 17,605,899 | |
| | | | | | | | |
| | | | | | | | |
|
| |
Agency Mortgage-Backed Securities – 19.45% | |
|
| |
Fannie Mae | | | | | | | | |
5.50% 3/1/37 | | | 6,666 | | | | 6,956 | |
5.50% 7/1/37 | | | 17,369 | | | | 18,121 | |
Fannie Mae ARM | | | | | | | | |
4.563% (LIBOR12M + 1.83%, Cap 10.16%) 8/1/35● | | | 9,021 | | | | 9,470 | |
Fannie Mae S.F. 15 yr | | | | | | | | |
4.50% 7/1/20 | | | 1,938 | | | | 1,972 | |
Fannie Mae S.F. 30 yr | | | | | | | | |
3.00% 4/1/43 | | | 1,163,990 | | | | 1,164,958 | |
3.00% 11/1/46 | | | 9,153,383 | | | | 9,124,231 | |
3.50% 2/1/48 | | | 4,432,283 | | | | 4,517,027 | |
4.00% 10/1/40 | | | 20,865 | | | | 21,642 | |
4.00% 11/1/40 | | | 112,498 | | | | 116,691 | |
4.00% 3/1/46 | | | 99,007 | | | | 102,372 | |
4.00% 9/1/48 | | | 18,615,038 | | | | 19,177,803 | |
4.50% 5/1/35 | | | 68,296 | | | | 72,220 | |
4.50% 8/1/35 | | | 126,036 | | | | 133,088 | |
4.50% 9/1/35 | | | 117,459 | | | | 124,060 | |
4.50% 5/1/39 | | | 465,063 | | | | 491,360 | |
4.50% 8/1/39 | | | 837,930 | | | | 889,155 | |
4.50% 11/1/39 | | | 363,636 | | | | 387,423 | |
4.50% 6/1/40 | | | 405,208 | | | | 429,924 | |
50
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Agency Mortgage-Backed Securities(continued) | |
| |
Fannie Mae S.F. 30 yr | | | | | |
4.50% 7/1/40 | | | 392,023 | | | $ | 418,813 | |
4.50% 8/1/40 | | | 96,089 | | | | 101,510 | |
4.50% 4/1/41 | | | 69,199 | | | | 73,164 | |
4.50% 10/1/43 | | | 497,297 | | | | 528,782 | |
4.50% 10/1/44 | | | 274,124 | | | | 289,573 | |
4.50% 3/1/46 | | | 594,970 | | | | 627,995 | |
4.50% 5/1/46 | | | 1,347,780 | | | | 1,421,607 | |
4.50% 7/1/46 | | | 506,204 | | | | 533,597 | |
5.00% 3/1/34 | | | 1,975 | | | | 2,129 | |
5.00% 4/1/34 | | | 12,094 | | | | 13,011 | |
5.00% 8/1/34 | | | 18,802 | | | | 20,230 | |
5.00% 4/1/35 | | | 4,933 | | | | 5,304 | |
5.00% 12/1/37 | | | 1,612 | | | | 1,730 | |
5.00% 3/1/38 | | | 128,077 | | | | 137,412 | |
5.00% 6/1/38 | | | 5,673 | | | | 6,057 | |
5.00% 2/1/39 | | | 4,055 | | | | 4,284 | |
5.00% 5/1/40 | | | 93,569 | | | | 100,937 | |
5.00% 6/1/44 | | | 878,279 | | | | 954,538 | |
5.00% 7/1/47 | | | 642,513 | | | | 693,544 | |
5.50% 12/1/33 | | | 11,795 | | | | 12,653 | |
5.50% 2/1/35 | | | 277,824 | | | | 307,841 | |
5.50% 5/1/44 | | | 11,357,351 | | | | 12,495,191 | |
5.50% 8/1/48 | | | 822,742 | | | | 893,109 | |
6.00% 9/1/36 | | | 15,405 | | | | 16,713 | |
6.00% 8/1/38 | | | 31,902 | | | | 34,388 | |
6.00% 12/1/38 | | | 6,695 | | | | 7,393 | |
6.00% 6/1/41 | | | 2,142,457 | | | | 2,373,838 | |
6.00% 7/1/41 | | | 7,112,714 | | | | 7,889,435 | |
6.00% 1/1/42 | | | 1,872,185 | | | | 2,065,784 | |
6.50% 11/1/33 | | | 2,896 | | | | 3,198 | |
6.50% 2/1/36 | | | 38,109 | | | | 42,790 | |
6.50% 3/1/36 | | | 56,859 | | | | 62,797 | |
6.50% 6/1/36 | | | 97,099 | | | | 109,905 | |
6.50% 2/1/38 | | | 19,619 | | | | 21,694 | |
6.50% 11/1/38 | | | 5,903 | | | | 6,700 | |
Fannie Mae S.F. 30 yr TBA | | | | | |
3.00% 5/1/49 | | | 55,200,000 | | | | 54,908,908 | |
3.50% 5/1/49 | | | 183,700,000 | | | | 186,111,063 | |
4.00% 4/1/49 | | | 37,700,000 | | | | 38,780,931 | |
4.00% 5/1/49 | | | 40,000,000 | | | | 41,112,500 | |
4.50% 5/1/49 | | | 6,100,000 | | | | 6,350,809 | |
Freddie Mac ARM | | | | | |
4.555% (LIBOR12M + 2.18%, Cap 10.583%) 5/1/37● | | | 152,328 | | | | 162,204 | |
4.75% (LIBOR12M + 1.625%, Cap 10.50%) 2/1/38● | | | 14,990 | | | | 15,698 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Agency Mortgage-Backed Securities(continued) | |
| |
Freddie Mac S.F. 20 yr | | | | | | | | |
5.50% 10/1/23 | | | 17,349 | | | $ | 18,578 | |
5.50% 8/1/24 | | | 7,714 | | | | 8,261 | |
Freddie Mac S.F. 30 yr | | | | | | | | |
3.00% 12/1/48 | | | 20,735,448 | | | | 20,655,629 | |
3.50% 8/1/48 | | | 165,927 | | | | 168,632 | |
3.50% 9/1/48 | | | 5,777,294 | | | | 5,871,053 | |
3.50% 11/1/48 | | | 11,163,201 | | | | 11,403,944 | |
4.50% 4/1/39 | | | 55,752 | | | | 59,216 | |
4.50% 7/1/42 | | | 515,369 | | | | 545,725 | |
4.50% 12/1/43 | | | 113,964 | | | | 121,068 | |
4.50% 8/1/44 | | | 643,522 | | | | 680,455 | |
4.50% 8/1/48 | | | 3,786,452 | | | | 3,999,750 | |
5.00% 12/1/44 | | | 1,296,559 | | | | 1,398,921 | |
5.50% 6/1/41 | | | 2,040,263 | | | | 2,261,011 | |
5.50% 9/1/41 | | | 3,257,940 | | | | 3,621,263 | |
6.00% 7/1/40 | | | 5,067,650 | | | | 5,581,503 | |
6.50% 11/1/33 | | | 21,330 | | | | 23,726 | |
6.50% 1/1/35 | | | 73,500 | | | | 85,580 | |
7.00% 1/1/38 | | | 18,250 | | | | 20,703 | |
GNMA I S.F. 30 yr | | | | | | | | |
5.50% 2/15/41 | | | 206,289 | | | | 225,940 | |
GNMA II S.F. 30 yr | | | | | | | | |
5.50% 5/20/37 | | | 117,934 | | | | 125,786 | |
6.00% 4/20/34 | | | 3,704 | | | | 3,907 | |
6.00% 2/20/39 | | | 127,617 | | | | 136,008 | |
6.00% 10/20/39 | | | 227,276 | | | | 251,692 | |
6.00% 2/20/40 | | | 534,980 | | | | 573,782 | |
6.00% 4/20/46 | | | 172,117 | | | | 188,816 | |
GNMA II S.F. 30 yr TBA | | | | | |
4.00% 5/20/49 | | | 6,000,000 | | | | 6,191,719 | |
| | | | | | | | |
Total Agency Mortgage-Backed
Securities(cost $456,735,478) | | | | 460,730,900 | |
| | | | | | | | |
| | | | | | | | |
| |
Agency Obligation – 0.10% | | | | | | | | |
| |
Federal Home Loan Mortgage 2.25% 11/24/20 | | | 2,300,000 | | | | 2,297,088 | |
| | | | | | | | |
Total Agency Obligation
(cost $2,300,000) | | | | 2,297,088 | |
| | | | | | | | |
| | | | | | | | |
| |
Collateralized Debt Obligations – 3.73% | | | | | |
| |
Allegro CLO VI | | | | | | | | |
Series2017-2A A 144A 3.903% (LIBOR03M + 1.13%, Floor 1.13%) 1/17/31 #● | | | 400,000 | | | | 396,541 | |
AMMC CLO 16 | | | | | | | | |
Series2015-16A AR 144A 4.057% (LIBOR03M + 1.26%) 4/14/29 #● | | | 145,000 | | | | 144,633 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Collateralized Debt Obligations(continued) | |
| |
AMMC CLO 21 | | | | | | | | |
Series2017-21A A 144A 3.988% (LIBOR03M + 1.25%) 11/2/30 #● | | | 2,400,000 | | | $ | 2,393,203 | |
AMMC CLO 22 | | | | | | | | |
Series2018-22A A 144A 3.801% (LIBOR03M + 1.03%, Floor 1.03%) 4/25/31 #● | | | 1,300,000 | | | | 1,282,091 | |
AMMC CLO XII | | | | | | | | |
Series2013-12A AR 144A 3.897% (LIBOR03M + 1.20%, Floor 1.20%) 11/10/30 #● | | | 2,000,000 | | | | 1,989,654 | |
Apex Credit CLO | | | | | | | | |
Series2017-1A A1 144A 4.249% (LIBOR03M + 1.47%, Floor 1.47%) 4/24/29 #● | | | 1,275,000 | | | | 1,274,615 | |
Series2018-1A A2 144A 3.801% (LIBOR03M + 1.03%) 4/25/31 #● | | | 2,400,000 | | | | 2,367,043 | |
Arbor Realty CLO | | | | | | | | |
Series2017-FL3 A 144A 3.474% (LIBOR01M + 0.99%) 12/15/27 #● | | | 250,000 | | | | 249,219 | |
Atlas Senior Loan Fund X | | | | | |
Series2018-10A A 144A 3.877% (LIBOR03M + 1.09%) 1/15/31 #● | | | 1,500,000 | | | | 1,480,705 | |
Atrium XII | | | | | | | | |
Series 12A AR 144A 3.591% (LIBOR03M + 0.83%) 4/22/27 #● | | | 2,500,000 | | | | 2,483,100 | |
Atrium XIII | | | | | | | | |
Series 13A A1 144A 3.941% (LIBOR03M + 1.18%) 11/21/30 #● | | | 250,000 | | | | 249,529 | |
Battalion CLO XII | | | | | | | | |
Series2018-12A A1 144A 3.753% (LIBOR03M + 1.07%, Floor 1.07%) 5/17/31 #● | | | 1,000,000 | | | | 981,011 | |
BlueMountain CLO | | | | | | | | |
Series2015-1A A1R 144A 4.127% (LIBOR03M + 1.33%) 4/13/27 #● | | | 400,000 | | | | 399,872 | |
Catamaran CLO | | | | | | | | |
Series2013-1A AR 144A 3.615% (LIBOR03M + 0.85%) 1/27/28 #● | | | 3,500,000 | | | | 3,472,511 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Collateralized Debt Obligations(continued) | |
| |
CFIP CLO | | | | | | | | |
Series2017-1A A 144A 4.00% (LIBOR03M + 1.22%) 1/18/30 #● | | | 2,300,000 | | | $ | 2,291,501 | |
CIFC Funding | | | | | | | | |
Series2015-2A AR 144A 3.567% (LIBOR03M + 0.78%, Floor 0.78%) 4/15/27 #● | | | 2,050,000 | | | | 2,036,308 | |
Crown Point CLO 5 | | | | | | | | |
Series2018-5A A 144A 3.713% (LIBOR03M + 0.94%) 7/17/28 #● | | | 400,000 | | | | 396,064 | |
CVP CLO2017-2 | | | | | | | | |
Series2017-2A A 144A 3.951% (LIBOR03M + 1.19%, Floor 1.19%) 1/20/31 #● | | | 400,000 | | | | 397,723 | |
ECP CLO | | | | | | | | |
Series2015-7A A1R 144A 3.901% (LIBOR03M + 1.14%) 4/22/30 #● | | | 3,000,000 | | | | 2,955,192 | |
Emerson Park CLO | | | | | | | | |
Series2013-1A A1AR 144A 3.767% (LIBOR03M + 0.98%) 7/15/25 #● | | | 22,124 | | | | 22,112 | |
Galaxy XXI CLO | | | | | | | | |
Series2015-21A AR 144A 3.781% (LIBOR03M + 1.02%) 4/20/31 #● | | | 1,650,000 | | | | 1,626,153 | |
GoldenTree Loan | | | | | | | | |
Management US CLO 1 Series2017-1A A 144A 3.981% (LIBOR03M + 1.22%) 4/20/29 #● | | | 250,000 | | | | 249,957 | |
Jamestown CLO IV | | | | | | | | |
Series2014-4A A1CR 144A 3.477% (LIBOR03M + 0.69%) 7/15/26 #● | | | 807,132 | | | | 803,634 | |
Jamestown CLO VII | | | | | | | | |
Series2015-7A A1R 144A 3.601% (LIBOR03M + 0.83%, Floor 0.83%) 7/25/27 #● | | | 700,000 | | | | 695,694 | |
Jamestown CLO VIII | | | | | | | | |
Series2015-8A A1AR 144A 3.657% (LIBOR03M + 0.87%, Floor 0.87%) 1/15/28 #● | | | 1,500,000 | | | | 1,487,485 | |
KKR CLO 20 | | | | | | | | |
Series 20 A 144A 3.909% (LIBOR03M + 1.13%, Floor 1.13%) 10/16/30 #● | | | 300,000 | | | | 296,153 | |
52
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Collateralized Debt Obligations(continued) | |
| |
Marathon CLO V | | | | | | | | |
Series2013-5A A1R 144A 3.511% (LIBOR03M + 0.87%) 11/21/27 #● | | | 1,100,000 | | | $ | 1,089,063 | |
Mariner CLO 5 | | | | | | | | |
Series2018-5A A 144A 3.881% (LIBOR03M + 1.11%, Floor 1.11%) 4/25/31 #● | | | 1,800,000 | | | | 1,774,622 | |
Midocean Credit CLO VIII | | | | | |
Series2018-8A A1 144A 3.794% (LIBOR03M + 1.15%) 2/20/31 #● | | | 1,750,000 | | | | 1,724,807 | |
Midocean Credit CLO IX | | | | | | | | |
Series2018-9A A1 144A 3.911% (LIBOR03M + 1.15%, Floor 1.15%) 7/20/31 #● | | | 1,250,000 | | | | 1,233,370 | |
Monarch Grove CLO | | | | | | | | |
Series2018-1A A1 144A 3.651% (LIBOR03M + 0.88%) 1/25/28 #● | | | 5,100,000 | | | | 5,061,327 | |
Mountain View CLO X | | | | | | | | |
Series2015-10A AR 144A 3.617% (LIBOR03M + 0.82%, Floor 0.82%) 10/13/27 #● | | | 2,000,000 | | | | 1,985,006 | |
Neuberger Berman Loan | | | | | | | | |
Advisers CLO 29 | | | | | | | | |
Series2018-29A A1 144A 3.716% (LIBOR03M + 1.13%, Floor 1.13%) 10/19/31 #● | | | 2,800,000 | | | | 2,773,674 | |
Northwoods Capital XV | | | | | | | | |
Series2017-15A A 144A 3.933% (LIBOR03M + 1.30%) 6/20/29 #● | | | 250,000 | | | | 248,978 | |
Northwoods Capital XVII | | | | | | | | |
Series2018-17A A 144A 3.821% (LIBOR03M + 1.06%, Floor 1.06%) 4/22/31 #● | | | 1,700,000 | | | | 1,670,638 | |
Oaktree CLO | | | | | | | | |
Series2014-1A A1R 144A 3.978% (LIBOR03M + 1.29%) 5/13/29 #● | | | 250,000 | | | | 249,782 | |
OCP CLO | | | | | | | | |
Series2015-9A A1R 144A 3.587% (LIBOR03M + 0.80%) 7/15/27 #● | | | 2,100,000 | | | | 2,087,007 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Collateralized Debt Obligations(continued) | |
| |
OCP CLO | | | | | | | | |
Series2015-10A A1R 144A 3.585% (LIBOR03M + 0.82%) 10/26/27 #● | | | 3,200,000 | | | $ | 3,178,758 | |
Series2017-13A A1A 144A 4.047% (LIBOR03M + 1.26%) 7/15/30 #● | | | 1,000,000 | | | | 995,594 | |
Octagon Investment Partners XIX | | | | | | | | |
Series2014-1A AR 144A 3.887% (LIBOR03M + 1.10%) 4/15/26 #● | | | 509,198 | | | | 508,883 | |
OFSI Fund VI | | | | | | | | |
Series2014-6A A1R 144A 3.437% (LIBOR03M + 0.65%) 3/20/25 #● | | | 553,995 | | | | 552,625 | |
OFSI Fund VII | | | | | | | | |
Series2014-7A AR 144A 3.68% (LIBOR03M + 0.90%) 10/18/26 #● | | | 1,557,202 | | | | 1,552,916 | |
OZLM XVIII | | | | | | | | |
Series2018-18A A 144A 3.807% (LIBOR03M + 1.02%, Floor 1.02%) 4/15/31 #● | | | 1,350,000 | | | | 1,327,424 | |
Saranac CLO VII | | | | | | | | |
Series2014-2A A1AR 144A 3.874% (LIBOR03M + 1.23%) 11/20/29 #● | | | 250,000 | | | | 247,697 | |
Shackleton III CLO | | | | | | | | |
Series2013-3A AR 144A 3.907% (LIBOR03M + 1.12%, Floor 1.12%) 7/15/30 #● | | | 1,750,000 | | | | 1,735,340 | |
Sound Point CLO VIII | | | | | | | | |
Series2015-1A AR 144A 3.647% (LIBOR03M + 0.86%) 4/15/27 #● | | | 3,200,000 | | | | 3,198,400 | |
Sounds Point CLOIV-R | | | | | | | | |
Series2013-3RA A 144A 3.93% (LIBOR03M + 1.15%, Floor 1.15%) 4/18/31 #● | | | 1,000,000 | | | | 990,406 | |
Staniford Street CLO | | | | | | | | |
Series2014-1A AR 144A 3.791% (LIBOR03M + 1.18%) 6/15/25 #● | | | 625,444 | | | | 625,122 | |
Steele Creek CLO | | | | | | | | |
Series2017-1A A 144A 4.037% (LIBOR03M + 1.25%) 1/15/30 #● | | | 250,000 | | | | 248,595 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Collateralized Debt Obligations(continued) | |
| |
TIAA CLO II | | | | | | | | |
Series2017-1A A 144A 4.041% (LIBOR03M + 1.28%) 4/20/29 #● | | | 250,000 | | | $ | 249,700 | |
TICP CLO I | | | | | | | | |
Series2015-1A AR 144A 3.561% (LIBOR03M + 0.80%) 7/20/27 #● | | | 1,200,000 | | | | 1,192,139 | |
TICP CLO IX | | | | | | | | |
Series2017-9A A 144A 3.901% (LIBOR03M + 1.14%) 1/20/31 #● | | | 400,000 | | | | 395,621 | |
Venture 31 CLO | | | | | | | | |
Series2018-31A A1 144A 3.791% (LIBOR03M + 1.03%, Floor 1.03%) 4/20/31 #● | | | 1,500,000 | | | | 1,475,447 | |
Venture 33 CLO | | | | | | | | |
Series2018-33A A1L 144A 3.927% (LIBOR03M + 1.14%, Floor 1.14%) 7/15/31 #● | | | 1,250,000 | | | | 1,238,563 | |
Venture 34 CLO | | | | | | | | |
Series2018-34A A 144A 3.72% (LIBOR03M + 1.23%, Floor 1.23%) 10/15/31 #● | | | 2,500,000 | | | | 2,486,697 | |
Venture XVI CLO | | | | | | | | |
Series2014-16A ARR 144A 3.637% (LIBOR03M + 0.85%, Floor 0.85%) 1/15/28 #● | | | 1,200,000 | | | | 1,190,452 | |
Venture XVII CLO | | | | | | | | |
Series2014-17A ARR 144A 3.667% (LIBOR03M + 0.88%) 4/15/27 #● | | | 400,000 | | | | 396,626 | |
Venture XX CLO | | | | | | | | |
Series2015-20A AR 144A 3.607% (LIBOR03M + 0.82%) 4/15/27 #● | | | 2,000,000 | | | | 1,990,276 | |
Venture XXII CLO | | | | | | | | |
Series2015-22A AR 144A 3.867% (LIBOR03M + 1.08%) 1/15/31 #● | | | 1,750,000 | | | | 1,730,733 | |
Venture XXIV CLO | | | | | | | | |
Series2016-24A A1D 144A 4.181% (LIBOR03M + 1.42%) 10/20/28 #● | | | 110,000 | | | | 109,975 | |
Venture XXVIII CLO | | | | | | | | |
Series2017-28A A2 144A 3.871% (LIBOR03M + 1.11%) 7/20/30 #● | | | 2,100,000 | | | | 2,081,173 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Collateralized Debt Obligations(continued) | |
| |
Venture CDO | | | | | | | | |
Series2016-25A A1 144A 4.251% (LIBOR03M + 1.49%) 4/20/29 #● | | | 490,000 | | | $ | 490,891 | |
Voya CLO | | | | | | | | |
Series2014-3A A1R 144A 3.491% (LIBOR03M + 0.72%) 7/25/26 #● | | | 821,139 | | | | 817,607 | |
Series2018-3A A1A 144A 3.61% (LIBOR03M + 1.15%, Floor 1.15%) 10/15/31 #● | | | 2,115,000 | | | | 2,102,883 | |
WhiteHorse IX | | | | | | | | |
Series2014-9A AR 144A 3.933% (LIBOR03M + 1.16%) 7/17/26 #● | | | 318,457 | | | | 318,020 | |
Z Capital Credit Partners CLO | | | | | | | | |
Series2015-1A A1R 144A 3.729% (LIBOR03M + 0.95%, Floor 0.95%) 7/16/27 #● | | | 2,600,000 | | | | 2,577,593 | |
| | | | | | | | |
Total Collateralized Debt
Obligations | | | | | |
(cost $89,029,174) | | | | | | | 88,326,133 | |
| | | | | | | | |
| | | | | | | | |
| |
Convertible Bonds – 1.38% | | | | | | | | |
| |
Aerojet Rocketdyne Holdings 2.25% exercise price $26.00, maturity date 12/15/23 | | | 230,000 | | | | 342,009 | |
BioMarin Pharmaceutical 1.50% exercise price $94.15, maturity date 10/15/20 | | | 502,000 | | | | 571,807 | |
Blackstone Mortgage Trust 4.75% exercise price $36.23, maturity date 3/15/23 | | | 383,000 | | | | 387,864 | |
Boingo Wireless 144A 1.00% exercise price $42.32, maturity date 10/1/23 # | | | 913,000 | | | | 822,681 | |
Booking Holdings 0.35% exercise price $1,315.10, maturity date 6/15/20 | | | 534,000 | | | | 723,473 | |
Cemex 3.72% exercise price $11.01, maturity date 3/15/20 | | | 1,329,000 | | | | 1,324,523 | |
Chart Industries 144A 1.00% exercise price $58.73, maturity date 11/15/24 # | | | 316,000 | | | | 515,646 | |
54
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Convertible Bonds(continued) | |
| |
Cheniere Energy 4.25% exercise price $138.38, maturity date 3/15/45 | | | 1,262,000 | | | $ | 993,036 | |
Cree 144A 0.875% exercise price $59.97, maturity date 9/1/23 # | | | 940,000 | | | | 1,079,462 | |
CSG Systems International 4.25% exercise price $56.99, maturity date 3/15/36 | | | 627,000 | | | | 661,109 | |
DISH Network
2.375% exercise price $82.22, maturity date 3/15/24 | | | 392,000 | | | | 324,819 | |
3.375% exercise price $65.18, maturity date 8/15/26 | | | 894,000 | | | | 761,688 | |
Dycom Industries 0.75% exercise price $96.89, maturity date 9/15/21 | | | 551,000 | | | | 509,729 | |
Empire State Realty OP 144A 2.625% exercise price $19.20, maturity date 8/15/19 # | | | 547,000 | | | | 545,009 | |
FTI Consulting 144A 2.00% exercise price $101.38, maturity date 8/15/23 # | | | 611,000 | | | | 625,511 | |
GAIN Capital Holdings 5.00% exercise price $8.20, maturity date 8/15/22 | | | 849,000 | | | | 850,104 | |
GCI Liberty 144A 1.75% exercise price $370.52, maturity date 9/30/46 # | | | 758,000 | | | | 831,643 | |
Helix Energy Solutions Group 4.25% exercise price $13.89, maturity date 5/1/22 | | | 863,000 | | | | 855,684 | |
Huron Consulting Group 1.25% exercise price $79.89, maturity date 10/1/19 | | | 826,000 | | | | 815,458 | |
Insulet
1.25% exercise price $58.37, maturity date 9/15/21 | | | 259,000 | | | | 427,723 | |
144A 1.375% exercise price $93.18, maturity date 11/15/24 # | | | 454,000 | | | | 547,921 | |
Jazz Investments I 1.875% exercise price $199.77, maturity date 8/15/21 | | | 472,000 | | | | 479,598 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Convertible Bonds (continued) | |
| |
Knowles 3.25% exercise price $18.43, maturity date 11/1/21 | | | 546,000 | | | $ | 639,703 | |
Liberty Media 2.25% exercise price $34.50, maturity date 9/30/46 | | | 1,563,000 | | | | 805,883 | |
Ligand Pharmaceuticals 144A 0.75% exercise price $248.48, maturity date 5/15/23 # | | | 538,000 | | | | 462,777 | |
Medicines 2.75% exercise price $48.97, maturity date 7/15/23 | | | 1,012,000 | | | | 856,420 | |
144A 3.50% exercise price $25.19, maturity date 1/15/24 # | | | 146,000 | | | | 188,959 | |
Meritor 3.25% exercise price $39.92, maturity date 10/15/37 | | | 336,000 | | | | 324,173 | |
Microchip Technology
1.625% exercise price $97.16, maturity date 2/15/27 | | | 806,000 | | | | 886,842 | |
Neurocrine Biosciences 2.25% exercise price $75.92, maturity date 5/15/24 | | | 537,000 | | | | 727,025 | |
New Mountain Finance 5.00% exercise price $15.80, maturity date 6/15/19 | | | 500,000 | | | | 501,276 | |
Novellus Systems 2.625% exercise price $32.53, maturity date 5/15/41 | | | 136,000 | | | | 752,100 | |
NRG Energy 144A 2.75% exercise price $47.74, maturity date 6/1/48 # | | | 732,000 | | | | 834,281 | |
NXP Semiconductors 1.00% exercise price $101.97, maturity date 12/1/19 | | | 372,000 | | | | 381,872 | |
ON Semiconductor 1.00% exercise price $18.50, maturity date 12/1/20 | | | 382,000 | | | | 473,061 | |
Palo Alto Networks 144A 0.75% exercise price $266.35, maturity date 7/1/23 # | | | 577,000 | | | | 641,762 | |
Paratek Pharmaceuticals 144A 4.75% exercise price $15.90, maturity date 5/1/24 # | | | 1,174,000 | | | | 898,538 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Convertible Bonds(continued) | |
| |
PDC Energy 1.125% exercise price $85.39, maturity date 9/15/21 | | | 754,000 | | | $ | 705,910 | |
PROS Holdings 2.00% exercise price $48.63, maturity date 6/1/47 | | | 712,000 | | | | 760,954 | |
Quotient Technology 1.75% exercise price $17.36, maturity date 12/1/22 | | | 619,000 | | | | 582,908 | |
Retrophin 2.50% exercise price $38.80, maturity date 9/15/25 | | | 588,000 | | | | 549,636 | |
Royal Gold 2.875% exercise price $102.29, maturity date 6/15/19 | | | 1,053,000 | | | | 1,056,410 | |
Synaptics 0.50% exercise price $73.02, maturity date 6/15/22 | | | 874,000 | | | | 808,682 | |
Synchronoss Technologies 0.75% exercise price $53.17, maturity date 8/15/19 | | | 300,000 | | | | 297,292 | |
Team 5.00% exercise price $21.70, maturity date 8/1/23 | | | 551,000 | | | | 597,483 | |
Tesla Energy Operations 1.625% exercise price $759.35, maturity date 11/1/19 | | | 1,040,000 | | | | 1,006,750 | |
Vector Group 1.75% exercise price $21.28, maturity date 4/15/20● | | | 755,000 | | | | 768,213 | |
Verint Systems 1.50% exercise price $64.46, maturity date 6/1/21 | | | 752,000 | | | | 832,277 | |
Vishay Intertechnology 144A 2.25% exercise price $31.49, maturity date 6/15/25 # | | | 409,000 | | | | 381,568 | |
| | | | | | | | |
Total Convertible Bonds
(cost $32,147,322) | | | | 32,719,252 | |
| | | | | | | | |
|
| |
Corporate Bonds – 36.99% | |
| |
Banking – 13.29% | | | | | | | | |
Akbank T.A.S. 144A
7.20% 3/16/27 #µ | | | 840,000 | | | | 724,648 | |
Ally Financial
3.75% 11/18/19 | | | 100,000 | | | | 100,500 | |
4.125% 3/30/20 | | | 1,000,000 | | | | 1,009,090 | |
8.00% 3/15/20 | | | 100,000 | | | | 104,750 | |
| | | | | | | | | | |
| | | | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds (continued) | | | | | |
| |
Banking (continued) | | | | | | | | | | |
ANZ New Zealand | | | | | | | | | | |
International 144A 2.60% 9/23/19 # | | | | | 200,000 | | | $ | 199,885 | |
Banco Bilbao Vizcaya Argentaria | | | | | | | | | | |
5.875%µy | | EUR | | | 400,000 | | | | 436,902 | |
6.75%µy | | EUR | | | 400,000 | | | | 460,635 | |
Banco de Credito e
Inversiones 144A
3.50% 10/12/27 # | | | | | 570,000 | | | | 557,104 | |
Banco Nacional de Desenvol-vimento Economico e Social 6.50% 6/10/19 | | | | | 2,500,000 | | | | 2,517,325 | |
Banco Santander | | | | | | | | | | |
3.848% 4/12/23 | | | | | 1,200,000 | | | | 1,211,442 | |
6.25%µy | | EUR | | | 1,300,000 | | | | 1,498,071 | |
Banco Santander Mexico | | | | | | | | | | |
144A 4.125% 11/9/22 # | | | | | 745,000 | | | | 754,685 | |
Bank of America | | | | | | | | | | |
2.625% 4/19/21 | | | | | 1,000,000 | | | | 997,289 | |
3.004% 12/20/23 µ | | | | | 2,001,000 | | | | 1,996,696 | |
3.252% (LIBOR03M + 0.65%) 6/25/22● | | | | | 1,800,000 | | | | 1,800,955 | |
3.30% 8/5/21 | | AUD | | | 240,000 | | | | 173,974 | |
3.30% 1/11/23 | | | | | 716,000 | | | | 725,802 | |
3.421% (LIBOR03M + 0.66%) 7/21/21● | | | | | 900,000 | | | | 902,339 | |
3.458% 3/15/25 µ | | | | | 2,775,000 | | | | 2,806,016 | |
3.503% (LIBOR03M + 0.77%) 2/5/26● | | | | | 1,550,000 | | | | 1,515,723 | |
3.55% 3/5/24 µ | | | | | 2,100,000 | | | | 2,133,906 | |
3.864% 7/23/24 µ | | | | | 2,200,000 | | | | 2,261,896 | |
4.125% 1/22/24 | | | | | 200,000 | | | | 209,706 | |
4.33% 3/15/50 µ | | | | | 930,000 | | | | 961,501 | |
5.875%µy | | | | | 900,000 | | | | 914,513 | |
Bank of China 144A
5.00% 11/13/24 # | | | | | 795,000 | | | | 840,754 | |
Bank of Georgia 144A
6.00% 7/26/23 # | | | | | 690,000 | | | | 692,634 | |
Bank of Ireland
7.375%µy | | EUR | | | 300,000 | | | | 354,606 | |
Bank of Montreal
3.30% 2/5/24 | | | | | 630,000 | | | | 637,243 | |
Bank of New York Mellon
3.801% (LIBOR03M + 1.05%) 10/30/23● | | | | | 1,420,000 | | | | 1,437,327 | |
Bank of Nova Scotia
1.875% 4/26/21 | | | | | 4,500,000 | | | | 4,435,955 | |
Barclays | | | | | | | | | | |
4.063% (LIBOR03M + 1.38%) 5/16/24● | | | | | 1,800,000 | | | | 1,748,092 | |
56
| | | | | | | | | | |
| | | | | Principal
amount° | | | Value
(US $) | |
| |
Corporate Bonds(continued) | |
| |
Banking (continued) | | | | | | | | | | |
Barclays | | | | | | | | | | |
4.61% 2/15/23 µ | | | | | 1,200,000 | | | $ | 1,226,880 | |
4.972% 5/16/29 µ | | | | | 3,000,000 | | | | 3,106,549 | |
6.50%µy | | EUR | | | 1,000,000 | | | | 1,134,349 | |
8.00%µy | | | | | 1,705,000 | | | | 1,745,494 | |
Barclays Bank
7.625% 11/21/22 | | | | | 1,800,000 | | | | 1,958,553 | |
BB&T | | | | | | | | | | |
2.956% (LIBOR03M + 0.22%) 2/1/21● | | | | | 980,000 | | | | 977,057 | |
3.75% 12/6/23 | | | | | 1,780,000 | | | | 1,848,935 | |
3.875% 3/19/29 | | | | | 295,000 | | | | 298,896 | |
BBVA Bancomer 144A 7.25% 4/22/20 # | | | | | 100,000 | | | | 103,626 | |
BNG Bank 3.50% 7/19/27 | | AUD | | | 292,000 | | | | 224,548 | |
BNP Paribas | | | | | | | | | | |
144A 4.705% 1/10/25 #µ | | | | | 1,600,000 | | | | 1,664,886 | |
144A 7.375%#µy | | | | | 700,000 | | | | 743,537 | |
7.375%µy | | | | | 500,000 | | | | 531,097 | |
Branch Banking & Trust
2.85% 4/1/21 | | | | | 670,000 | | | | 671,353 | |
CIT Group 4.125% 3/9/21 | | | | | 400,000 | | | | 406,000 | |
Citibank | | | | | | | | | | |
3.40% 7/23/21 | | | | | 540,000 | | | | 547,335 | |
3.65% 1/23/24 | | | | | 2,305,000 | | | | 2,380,713 | |
Citigroup | | | | | | | | | | |
2.65% 10/26/20 | | | | | 3,200,000 | | | | 3,193,600 | |
3.20% 10/21/26 | | | | | 1,000,000 | | | | 981,185 | |
3.268% (BBSW3M + 1.25%) 8/7/19● | | AUD | | | 454,000 | | | | 323,246 | |
3.537% (LIBOR03M + 0.93%) 6/7/19● | | | | | 2,300,000 | | | | 2,303,725 | |
3.75% 10/27/23 | | AUD | | | 498,000 | | | | 368,569 | |
3.783% (LIBOR03M + 1.10%) 5/17/24● | | | | | 1,560,000 | | | | 1,567,449 | |
4.044% 6/1/24 µ | | | | | 1,800,000 | | | | 1,861,387 | |
4.05% 7/30/22 | | | | | 150,000 | | | | 154,598 | |
4.075% 4/23/29 µ | | | | | 3,400,000 | | | | 3,491,989 | |
Citizens Bank
2.55% 5/13/21 | | | | | 2,605,000 | | | | 2,587,951 | |
Citizens Financial Group | | | | | | | | | | |
2.375% 7/28/21 | | | | | 115,000 | | | | 113,508 | |
4.30% 12/3/25 | | | | | 965,000 | | | | 989,820 | |
Compass Bank | | | | | | | | | | |
2.875% 6/29/22 | | | | | 1,220,000 | | | | 1,208,211 | |
3.875% 4/10/25 | | | | | 1,145,000 | | | | 1,135,447 | |
Cooperatieve Rabobank
2.50% 9/4/20 | | NOK | | | 1,740,000 | | | | 204,737 | |
| | | | | | | | | | |
| | | | | Principal amount° | | | Value
(US $) | |
| |
Corporate Bonds(continued) | |
| |
Banking (continued) | | | | | | | | | | |
Cooperatieve Rabobank | | | | | | | | | | |
3.195% (LIBOR03M + 0.43%) 4/26/21● | | | | | 500,000 | | | $ | 501,588 | |
3.375% 4/24/23 | | NZD | | | 541,000 | | | | 383,745 | |
3.75% 7/21/26 | | | | | 1,350,000 | | | | 1,333,660 | |
4.375% 8/4/25 | | | | | 2,000,000 | | | | 2,064,842 | |
6.875% 3/19/20 | | EUR | | | 2,400,000 | | | | 2,868,033 | |
Credit Suisse Group 144A 4.207% 6/12/24 #µ | | | | | 1,435,000 | | | | 1,471,356 | |
144A 6.25%#µy | | | | | 2,035,000 | | | | 2,034,396 | |
144A 7.50%#µy | | | | | 1,685,000 | | | | 1,734,429 | |
Credit Suisse Group Funding Guernsey
2.75% 3/26/20 | | | | | 2,199,000 | | | | 2,196,680 | |
3.125% 12/10/20 | | | | | 250,000 | | | | 250,922 | |
3.80% 9/15/22 | | | | | 3,350,000 | | | | 3,415,773 | |
3.80% 6/9/23 | | | | | 2,300,000 | | | | 2,338,233 | |
DBS Group Holdings 144A 4.52% 12/11/28 #µ | | | | | 940,000 | | | | 976,060 | |
Deutsche Bank
2.70% 7/13/20 | | | | | 500,000 | | | | 494,725 | |
2.85% 5/10/19 | | | | | 3,100,000 | | | | 3,098,594 | |
3.767% (LIBOR03M + 0.97%) 7/13/20● | | | | | 100,000 | | | | 99,676 | |
4.25% 10/14/21 | | | | | 2,000,000 | | | | 2,010,971 | |
5.00% 2/14/22 | | | | | 3,100,000 | | | | 3,171,075 | |
Fifth Third Bancorp
3.65% 1/25/24 | | | | | 790,000 | | | | 809,903 | |
3.95% 3/14/28 | | | | | 1,865,000 | | | | 1,929,881 | |
Fifth Third Bank
3.85% 3/15/26 | | | | | 200,000 | | | | 203,880 | |
Goldman Sachs Group
2.876% 10/31/22 µ | | | | | 300,000 | | | | 297,660 | |
2.908% 6/5/23 µ | | | | | 600,000 | | | | 593,531 | |
3.20% 2/23/23 | | | | | 2,200,000 | | | | 2,205,366 | |
3.209% (BBSW3M + 1.30%) 8/21/19● | | AUD | | | 140,000 | | | | 99,691 | |
3.55% 2/12/21 | | CAD | | | 100,000 | | | | 76,379 | |
3.649% (LIBOR03M + 1.05%) 6/5/23● | | | | | 780,000 | | | | 781,280 | |
3.811% (LIBOR03M + 1.20%) 9/15/20● | | | | | 1,700,000 | | | | 1,718,093 | |
3.854% (LIBOR03M + 1.17%) 11/15/21● | | | | | 1,700,000 | | | | 1,716,267 | |
3.854% (LIBOR03M + 1.17%) 5/15/26● | | | | | 525,000 | | | | 515,500 | |
4.131% (LIBOR03M + 1.36%) 4/23/21● | | | | | 1,300,000 | | | | 1,319,541 | |
4.223% 5/1/29 µ | | | | | 4,700,000 | | | | 4,813,955 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | |
| |
Banking (continued) | | | | | | | | |
Goldman Sachs Group | | | | | | | | |
5.20% 12/17/19 | | NZD | 206,000 | | | $ | 142,838 | |
6.00% 6/15/20 | | | 2,440,000 | | | | 2,531,284 | |
HSBC Bank 144A
4.125% 8/12/20 # | | | 500,000 | | | | 509,234 | |
HSBC Holdings | | | | | | | | |
2.65% 1/5/22 | | | 200,000 | | | | 198,353 | |
3.40% 3/8/21 | | | 400,000 | | | | 403,745 | |
3.683% (LIBOR03M + 1.00%) 5/18/24● | | | 1,000,000 | | | | 992,337 | |
4.292% 9/12/26 µ | | | 750,000 | | | | 774,566 | |
4.295% (LIBOR03M + 1.50%) 1/5/22● | | | 5,200,000 | | | | 5,315,795 | |
4.30% 3/8/26 | | | 200,000 | | | | 207,871 | |
4.311% (LIBOR03M + 1.66%) 5/25/21● | | | 1,200,000 | | | | 1,223,923 | |
6.00%µy | | EUR | 900,000 | | | | 1,127,232 | |
Huntington Bancshares
2.30% 1/14/22 | | | 670,000 | | | | 660,261 | |
Huntington National Bank
2.50% 8/7/22 | | | 1,245,000 | | | | 1,233,692 | |
ING Groep
6.875%µy | | | 1,115,000 | | | | 1,152,332 | |
JPMorgan Chase & Co. | | | | | | | | |
2.25% 1/23/20 | | | 10,800,000 | | | | 10,761,960 | |
3.22% 3/1/25 µ | | | 500,000 | | | | 501,191 | |
3.662% (LIBOR03M + 0.89%) 7/23/24● | | | 1,495,000 | | | | 1,492,177 | |
3.671% (LIBOR03M + 0.90%) 4/25/23● | | | 1,000,000 | | | | 1,005,275 | |
3.707% (LIBOR03M + 1.10%) 6/7/21● | | | 2,900,000 | | | | 2,939,446 | |
3.797% 7/23/24 µ | | | 1,770,000 | | | | 1,819,129 | |
3.96% 1/29/27 µ | | | 775,000 | | | | 802,265 | |
4.005% 4/23/29 µ | | | 900,000 | | | | 926,047 | |
4.023% 12/5/24 µ | | | 1,825,000 | | | | 1,895,520 | |
4.40% 7/22/20 | | | 400,000 | | | | 409,098 | |
6.75%µy | | | 865,000 | | | | 948,831 | |
JPMorgan Chase Bank 3.053% (LIBOR03M + 0.37%) 2/19/21● | | | 355,000 | | | | 355,483 | |
3.105% (LIBOR03M + 0.34%) 4/26/21● | | | 3,000,000 | | | | 2,999,490 | |
KeyBank | | | | | | | | |
2.30% 9/14/22 | | | 730,000 | | | | 720,319 | |
3.18% 5/22/22 | | | 250,000 | | | | 250,948 | |
3.40% 5/20/26 | | | 1,995,000 | | | | 1,980,537 | |
6.95% 2/1/28 | | | 1,220,000 | | | | 1,492,942 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | |
| |
Banking (continued) | | | | | | | | |
Kreditanstalt fuer Wiederaufbau | | | | | | | | |
1.00% 7/15/19 | | | 750,000 | | | $ | 746,919 | |
Landwirtschaftliche Rentenbank | | | | | | | | |
5.375% 4/23/24 | | NZD | 648,000 | | | | 508,340 | |
Lloyds Bank | | | | | | | | |
2.40% 3/17/20 | | | 400,000 | | | | 398,609 | |
2.70% 8/17/20 | | | 1,500,000 | | | | 1,498,344 | |
144A 12.00%#µy | | | 1,700,000 | | | | 2,045,265 | |
Lloyds Banking Group | | | | | | | | |
3.413% (LIBOR03M + 0.80%) 6/21/21● | | | 600,000 | | | | 600,246 | |
7.00%µy | | GBP | 400,000 | | | | 522,154 | |
7.625%µy | | GBP | 2,500,000 | | | | 3,449,366 | |
7.875%µy | | GBP | 1,300,000 | | | | 1,865,975 | |
Manufacturers & Traders Trust
2.05% 8/17/20 | | | 485,000 | | | | 481,173 | |
Mitsubishi UFJ Financial Group | | | | | | | | |
2.19% 9/13/21 | | | 2,350,000 | | | | 2,310,179 | |
3.218% 3/7/22 | | | 500,000 | | | | 504,052 | |
3.535% 7/26/21 | | | 2,500,000 | | | | 2,536,840 | |
3.668% (LIBOR03M + 1.06%) 9/13/21● | | | 1,600,000 | | | | 1,617,904 | |
Mitsubishi UFJ Trust & Banking 144A | | | | | | | | |
2.65% 10/19/20 # | | | 500,000 | | | | 498,802 | |
Mizuho Bank 144A
2.40% 3/26/20 # | | | 1,100,000 | | | | 1,096,753 | |
Mizuho Financial Group | | | | | | | | |
3.748% (LIBOR03M + 1.14%) 9/13/21● | | | 1,900,000 | | | | 1,922,321 | |
Morgan Stanley | | | | | | | | |
2.50% 4/21/21 | | | 3,500,000 | | | | 3,480,717 | |
3.125% 8/5/21 | | CAD | 387,000 | | | | 294,431 | |
3.125% 1/23/23 | | | 400,000 | | | | 401,618 | |
3.247% (LIBOR03M + 0.55%) 2/10/21● | | | 3,000,000 | | | | 3,003,409 | |
3.737% 4/24/24 µ | | | 2,000,000 | | | | 2,042,188 | |
3.941% (LIBOR03M + 1.18%) 1/20/22● | | | 200,000 | | | | 202,060 | |
3.958% (LIBOR03M + 1.22%) 5/8/24● | | | 2,780,000 | | | | 2,801,957 | |
4.431% 1/23/30 µ | | | 1,040,000 | | | | 1,098,635 | |
5.00% 9/30/21 | | AUD | 359,000 | | | | 270,893 | |
5.00% 11/24/25 | | | 1,010,000 | | | | 1,084,263 | |
5.50% 1/26/20 | | | 480,000 | | | | 490,454 | |
7.30% 5/13/19 | | | 2,200,000 | | | | 2,211,394 | |
58
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | | | | | |
| |
Banking (continued) | | | | | | | | |
Nationwide Building Society | | | | | |
144A 3.766%
3/8/24 #µ | | | 800,000 | | | $ | 797,290 | |
144A 4.302%
3/8/29 #µ | | | 5,200,000 | | | | 5,284,650 | |
10.25%y● | | GBP | 625,000 | | | | 1,335,345 | |
PNC Bank | | | | | |
2.45% 11/5/20 | | | 250,000 | | | | 249,121 | |
2.70% 11/1/22 | | | 760,000 | | | | 757,033 | |
3.265% (LIBOR03M + 0.50%) 7/27/22● | | | 1,000,000 | | | | 996,177 | |
4.05% 7/26/28 | | | 1,350,000 | | | | 1,415,212 | |
PNC Financial Services Group | | | | | | | | |
3.50% 1/23/24 | | | 690,000 | | | | 709,289 | |
Popular 6.125% 9/14/23 | | | 440,000 | | | | 459,800 | |
Regions Financial | | | | | | | | |
2.75% 8/14/22 | | | 430,000 | | | | 427,044 | |
3.80% 8/14/23 | | | 1,100,000 | | | | 1,131,864 | |
Royal Bank of Canada | | | | | | | | |
2.30% 3/22/21 | | | 2,300,000 | | | | 2,288,504 | |
2.75% 2/1/22 | | | 185,000 | | | | 185,660 | |
Royal Bank of Scotland Group | | | | | | | | |
3.498% 5/15/23 µ | | | 500,000 | | | | 496,845 | |
4.152% (LIBOR03M + 1.55%) 6/25/24● | | | 455,000 | | | | 449,325 | |
4.154% (LIBOR03M + 1.47%) 5/15/23● | | | 390,000 | | | | 388,667 | |
4.269% 3/22/25 µ | | | 200,000 | | | | 202,201 | |
4.519% 6/25/24 µ | | | 540,000 | | | | 552,708 | |
4.80% 4/5/26 | | | 5,000,000 | | | | 5,202,526 | |
7.50%µy | | | 700,000 | | | | 714,875 | |
8.625%µy | | | 5,170,000 | | | | 5,518,975 | |
Santander UK | | | | | | | | |
3.246% (LIBOR03M + 0.62%) 6/1/21● | | | 1,300,000 | | | | 1,299,601 | |
3.40% 6/1/21 | | | 500,000 | | | | 504,092 | |
3.75% 11/15/21 | | | 200,000 | | | | 203,669 | |
144A 5.00%
11/7/23 # | | | 1,985,000 | | | | 2,037,160 | |
Santander UK Group Holdings | | | | | | | | |
3.823% 11/3/28 µ | | | 3,200,000 | | | | 3,104,228 | |
7.375%µy | | GBP | 2,200,000 | | | | 2,957,260 | |
Societe Generale | | | | | | | | |
144A 4.25%
4/14/25 # | | | 3,600,000 | | | | 3,631,212 | |
144A 7.375%#µy | | | 500,000 | | | | 516,875 | |
Standard Chartered 144A | | | | | | | | |
3.813% (LIBOR03M + 1.13%) 8/19/19 #● | | | 6,200,000 | | | | 6,220,466 | |
State Bank of India 3.745% (LIBOR03M + 0.95%) 4/6/20● | | | 900,000 | | | | 901,164 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds (continued) | | | | | |
| |
Banking (continued) | | | | | | | | |
State Street | | | | | | | | |
2.653% 5/15/23 µ | | | 45,000 | | | $ | 44,775 | |
3.10% 5/15/23 | | | 525,000 | | | | 532,976 | |
3.30% 12/16/24 | | | 100,000 | | | | 102,647 | |
4.141% 12/3/29 µ | | | 275,000 | | | | 295,660 | |
Sumitomo Mitsui Financial Group 4.281% (LIBOR03M + 1.68%) 3/9/21● | | | 2,300,000 | | | | 2,349,786 | |
SunTrust Bank | | | | | | | | |
2.45% 8/1/22 | | | 1,160,000 | | | | 1,145,779 | |
3.00% 2/2/23 | | | 585,000 | | | | 586,432 | |
3.30% 5/15/26 | | | 540,000 | | | | 536,129 | |
SunTrust Banks | | | | | | | | |
2.70% 1/27/22 | | | 1,105,000 | | | | 1,102,287 | |
4.00% 5/1/25 | | | 250,000 | | | | 261,962 | |
SVB Financial Group
3.50% 1/29/25 | | | 1,060,000 | | | | 1,048,675 | |
Turkiye Garanti Bankasi | | | | | | | | |
144A 5.25% 9/13/22 # | | | 355,000 | | | | 330,934 | |
144A 6.25% 4/20/21 # | | | 590,000 | | | | 576,152 | |
UBS | | | | | | | | |
144A 3.175% (LIBOR03M + 0.58%) 6/8/20 #● | | | 2,000,000 | | | | 2,008,302 | |
5.125% 5/15/24 | | | 200,000 | | | | 204,552 | |
7.625% 8/17/22 | | | 500,000 | | | | 550,257 | |
UBS Group Funding Switzerland | | | | | | | | |
144A 3.00% 4/15/21 # | | | 2,905,000 | | | | 2,905,391 | |
144A 4.125% 9/24/25 # | | | 870,000 | | | | 899,629 | |
144A 4.577% (LIBOR03M + 1.78%) 4/14/21 #● | | | 400,000 | | | | 410,002 | |
6.875%µy | | | 3,000,000 | | | | 3,067,503 | |
7.125%µy | | | 540,000 | | | | 562,013 | |
UniCredit | | | | | | | | |
144A 6.687% (LIBOR03M + 3.90%) 1/14/22 #● | | | 2,200,000 | | | | 2,271,862 | |
144A 7.83% 12/4/23 # | | | 2,900,000 | | | | 3,232,079 | |
US Bancorp | | | | | | | | |
3.375% 2/5/24 | | | 3,205,000 | | | | 3,280,998 | |
3.60% 9/11/24 | | | 1,275,000 | | | | 1,316,396 | |
3.95% 11/17/25 | | | 3,070,000 | | | | 3,241,871 | |
US Bank 3.40% 7/24/23 | | | 565,000 | | | | 579,419 | |
USB Capital IX 3.807% (LIBOR03M + 1.02%)y● | | | 1,820,000 | | | | 1,431,385 | |
Wells Fargo & Co. | | | | | | | | |
2.55% 12/7/20 | | | 2,800,000 | | | | 2,793,613 | |
3.00% 7/27/21 | | AUD | 979,000 | | | | 705,432 | |
3.50% 9/12/29 | | GBP | 196,000 | | | | 284,164 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | |
| |
Banking (continued) | | | | | | | | |
Wells Fargo & Co. | | | | | | | | |
3.584% 5/22/28 µ | | | 5,300,000 | | | $ | 5,331,598 | |
3.627% (LIBOR03M + 0.93%) 2/11/22● | | | 1,300,000 | | | | 1,309,288 | |
3.974% (LIBOR03M + 1.23%) 10/31/23● | | | 1,440,000 | | | | 1,463,676 | |
Wells Fargo Bank
3.325% 7/23/21 µ | | | 2,250,000 | | | | 2,265,488 | |
Woori Bank 144A
4.75% 4/30/24 # | | | 800,000 | | | | 841,850 | |
Zions Bancorporation | | | | | | | | |
3.35% 3/4/22 | | | 720,000 | | | | 726,728 | |
4.50% 6/13/23 | | | 690,000 | | | | 717,863 | |
| | | | | | | | |
| | | | | | | 314,716,652 | |
| | | | | | | | |
Basic Industry – 1.49% | |
Anglo American Capital | | | | | | | | |
144A 4.00% 9/11/27 # | | | 1,745,000 | | | | 1,699,448 | |
144A 4.75% 4/10/27 # | | | 975,000 | | | | 995,308 | |
BHP Billiton Finance USA
144A 6.25% 10/19/75 #µ | | | 2,595,000 | | | | 2,707,947 | |
Braskem Netherlands Finance | | | | | | | | |
144A 3.50% 1/10/23 # | | | 320,000 | | | | 314,483 | |
144A 4.50% 1/10/28 # | | | 905,000 | | | | 883,280 | |
4.50% 1/10/28 | | | 800,000 | | | | 780,800 | |
CK Hutchison International
17 144A 2.875%
4/5/22 # | | | 655,000 | | | | 651,771 | |
Cleveland-Cliffs
5.75% 3/1/25 | | | 525,000 | | | | 504,000 | |
Cydsa 144A
6.25% 10/4/27 # | | | 785,000 | | | | 754,589 | |
Dow Chemical | | | | | | | | |
144A 4.80% 11/30/28 # | | | 755,000 | | | | 813,227 | |
144A 5.55% 11/30/48 # | | | 660,000 | | | | 743,250 | |
DowDuPont
3.794% (LIBOR03M + 1.11%) 11/15/23● | | | 685,000 | | | | 687,529 | |
4.725% 11/15/28 | | | 1,195,000 | | | | 1,291,729 | |
5.419% 11/15/48 | | | 1,985,000 | | | | 2,257,067 | |
Equate Petrochemical
144A 3.00% 3/3/22 # | | | 625,000 | | | | 617,621 | |
First Quantum Minerals
144A 7.25% 4/1/23 # | | | 830,000 | | | | 813,400 | |
Freeport-McMoRan
5.45% 3/15/43 | | | 280,000 | | | | 246,403 | |
Georgia-Pacific | | | | | | | | |
144A 2.539% 11/15/19 # | | | 500,000 | | | | 499,176 | |
8.00% 1/15/24 | | | 2,242,000 | | | | 2,743,621 | |
Hudbay Minerals
144A 7.625% 1/15/25 # | | | 170,000 | | | | 175,100 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | |
| |
Basic Industry (continued) | | | | | | | | |
Huntsman International
5.125% 11/15/22 | | | 1,000,000 | | | $ | 1,047,500 | |
Israel Chemicals
144A 6.375% 5/31/38 # | | | 975,000 | | | | 1,048,700 | |
Joseph T Ryerson & Son 144A 11.00% 5/15/22 # | | | 160,000 | | | | 169,200 | |
Mexichem 144A
5.50% 1/15/48 # | | | 915,000 | | | | 865,288 | |
NOVA Chemicals 144A | | | | | | | | |
5.00% 5/1/25 # | | | 226,000 | | | | 222,327 | |
144A 5.25% 6/1/27 # | | | 115,000 | | | | 113,275 | |
Novelis 144A
6.25% 8/15/24 # | | | 202,000 | | | | 207,050 | |
Novolipetsk Steel Via Steel Funding DAC 144A 4.00% 9/21/24 # | | | 715,000 | | | | 689,567 | |
Nutrien | | | | | | | | |
4.20% 4/1/29 | | | 210,000 | | | | 216,372 | |
5.00% 4/1/49 | | | 365,000 | | | | 380,809 | |
OCP | | | | | | | | |
144A 4.50% 10/22/25 # | | | 755,000 | | | | 749,291 | |
144A 6.875% 4/25/44 # | | | 210,000 | | | | 229,302 | |
Petkim Petrokimya Holding
144A 5.875% 1/26/23 # | | | 675,000 | | | | 617,292 | |
Phosagro OAO via Phosagro Bond Funding DAC 144A 3.95% 11/3/21 # | | | 685,000 | | | | 681,452 | |
RPM International
4.55% 3/1/29 | | | 1,175,000 | | | | 1,195,540 | |
SASOL Financing USA | | | | | | | | |
5.875% 3/27/24 | | | 695,000 | | | | 737,835 | |
6.50% 9/27/28 | | | 250,000 | | | | 273,290 | |
Starfruit Finco 144A
8.00% 10/1/26 # | | | 195,000 | | | | 197,437 | |
Steel Dynamics
5.50% 10/1/24 | | | 510,000 | | | | 527,850 | |
Suzano Austria 144A
7.00% 3/16/47 # | | | 805,000 | | | | 899,587 | |
Syngenta Finance | | | | | | | | |
144A 3.933% 4/23/21 # | | | 825,000 | | | | 829,280 | |
144A 4.441% 4/24/23 # | | | 845,000 | | | | 862,912 | |
144A 5.182% 4/24/28 # | | | 1,235,000 | | | | 1,257,401 | |
Tronox Finance 144A
5.75% 10/1/25 # | | | 525,000 | | | | 488,906 | |
Vedanta Resources 144A
7.125% 5/31/23 # | | | 510,000 | | | | 500,693 | |
| | | | | | | | |
| | | | | | | 35,187,905 | |
| | | | | | | | |
60
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | |
| |
Brokerage – 0.32% | | | | | | | | |
Charles Schwab | | | | | | | | |
2.961% (LIBOR03M + 0.32%) 5/21/21● | | | 1,055,000 | | | $ | 1,054,963 | |
3.25% 5/21/21 | | | 465,000 | | | | 471,078 | |
3.85% 5/21/25 | | | 490,000 | | | | 515,747 | |
E*TRADE Financial | | | | | | | | |
3.80% 8/24/27 | | | 655,000 | | | | 637,129 | |
5.875%µy | | | 815,000 | | | | 826,206 | |
Jefferies Group | | | | | | | | |
4.15% 1/23/30 | | | 780,000 | | | | 715,624 | |
6.45% 6/8/27 | | | 331,000 | | | | 361,977 | |
6.50% 1/20/43 | | | 270,000 | | | | 282,780 | |
Lazard Group | | | | | | | | |
3.75% 2/13/25 | | | 2,100,000 | | | | 2,119,012 | |
4.375% 3/11/29 | | | 675,000 | | | | 682,175 | |
| | | | | | | | |
| | | | | | | 7,666,691 | |
| | | | | | | | |
Capital Goods – 1.27%
3M 2.75% 3/1/22 | | | 295,000 | | | | 297,634 | |
Advanced Disposal Services
144A 5.625% 11/15/24 # | | | 285,000 | | | | 292,125 | |
Aeropuertos Argentina 2000
144A 6.875% 2/1/27 # | | | 610,000 | | | | 577,213 | |
Ardagh Packaging Finance
144A 6.00% 2/15/25 # | | | 205,000 | | | | 205,513 | |
BMC East 144A
5.50% 10/1/24 # | | | 250,000 | | | | 246,563 | |
Boise Cascade 144A
5.625% 9/1/24 # | | | 312,000 | | | | 308,880 | |
Bombardier 144A
6.00% 10/15/22 # | | | 310,000 | | | | 314,263 | |
BWAY Holding 144A
5.50% 4/15/24 # | | | 460,000 | | | | 458,413 | |
CCL Industries 144A
3.25% 10/1/26 # | | | 655,000 | | | | 627,904 | |
Covanta Holding
5.875% 7/1/25 | | | 230,000 | | | | 234,887 | |
EnPro Industries 144A
5.75% 10/15/26 # | | | 205,000 | | | | 207,050 | |
General Dynamics | | | | | | | | |
3.00% 5/11/21 | | | 50,000 | | | | 50,440 | |
3.375% 5/15/23 | | | 985,000 | | | | 1,013,200 | |
General Electric | | | | | | | | |
3.113% (LIBOR03M + 0.38%) 5/5/26● | | | 920,000 | | | | 818,542 | |
4.65% 10/17/21 | | | 89,000 | | | | 92,296 | |
5.55% 5/4/20 | | | 470,000 | | | | 482,438 | |
6.00% 8/7/19 | | | 1,025,000 | | | | 1,034,847 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | |
| |
Capital Goods (continued) | | | | | | | | |
Grupo Cementos de | | | | | | | | |
Chihuahua 144A 5.25% 6/23/24 # | | | 730,000 | | | $ | 736,395 | |
Harris 3.231% (LIBOR03M + 0.48%) 4/30/20● | | | 3,100,000 | | | | 3,098,262 | |
Heathrow Funding 144A
4.875% 7/15/21 # | | | 200,000 | | | | 206,825 | |
Ingersoll-Rand Luxembourg Finance | | | | | | | | |
3.50% 3/21/26 | | | 385,000 | | | | 389,046 | |
3.80% 3/21/29 | | | 695,000 | | | | 706,969 | |
International Airport Finance
144A 12.00% 3/15/33 # | | | 630,000 | | | | 674,730 | |
Klabin Austria 144A
7.00% 4/3/49 # | | | 725,000 | | | | 723,550 | |
L3 Technologies | | | | | | | | |
3.85% 6/15/23 | | | 1,005,000 | | | | 1,036,773 | |
4.40% 6/15/28 | | | 1,630,000 | | | | 1,713,465 | |
Martin Marietta Materials
4.25% 12/15/47 | | | 680,000 | | | | 599,460 | |
Masco 5.95% 3/15/22 | | | 304,000 | | | | 325,386 | |
Northrop Grumman | | | | | | | | |
2.55% 10/15/22 | | | 1,380,000 | | | | 1,367,897 | |
3.25% 8/1/23 | | | 490,000 | | | | 496,400 | |
nVent Finance | | | | | | | | |
3.95% 4/15/23 | | | 475,000 | | | | 474,142 | |
4.55% 4/15/28 | | | 2,210,000 | | | | 2,224,714 | |
Parker-Hannifin
3.30% 11/21/24 | | | 65,000 | | | | 66,197 | |
Rockwell Collins
3.50% 3/15/27 | | | 490,000 | | | | 485,672 | |
Standard Industries | | | | | | | | |
144A 5.00% 2/15/27 # | | | 520,000 | | | | 504,556 | |
144A 6.00% 10/15/25 # | | | 145,000 | | | | 152,553 | |
Textron 3.247% (LIBOR03M + 0.55%) 11/10/20● | | | 2,900,000 | | | | 2,888,381 | |
TransDigm 6.375% 6/15/26 | | | 215,000 | | | | 213,624 | |
United Technologies | | | | | | | | |
2.30% 5/4/22 | | | 810,000 | | | | 798,366 | |
3.65% 8/16/23 | | | 225,000 | | | | 231,133 | |
4.125% 11/16/28 | | | 2,505,000 | | | | 2,613,046 | |
| | | | | | | | |
| | | | | | | 29,989,750 | |
| | | | | | | | |
Communications – 3.66% | | | | | | | | |
Altice France 144A
6.25% 5/15/24 # | | | 385,000 | | | | 389,331 | |
Altice Luxembourg 144A
7.75% 5/15/22 # | | | 380,000 | | | | 380,950 | |
Amazon.com 3.15% 8/22/27 | | | 1,700,000 | | | | 1,715,717 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds (continued) | |
| |
Communications (continued) | | | | | | | | |
AT&T | | | | | | | | |
3.20% 3/1/22 | | | 100,000 | | | $ | 100,940 | |
3.376% (LIBOR03M + | | | | | | | | |
0.75%) 6/1/21● | | | 2,200,000 | | | | 2,209,917 | |
3.737% (LIBOR03M + | | | | | | | | |
0.95%) 7/15/21● | | | 500,000 | | | | 506,065 | |
3.777% (LIBOR03M + | | | | | | | | |
1.18%) 6/12/24● | | | 6,100,000 | | | | 6,054,235 | |
3.80% 3/1/24 | | | 100,000 | | | | 102,548 | |
4.10% 2/15/28 | | | 2,276,000 | | | | 2,302,384 | |
4.35% 3/1/29 | | | 2,940,000 | | | | 3,007,191 | |
4.85% 3/1/39 | | | 30,000 | | | | 30,212 | |
Baidu 4.375% 3/29/28 | | | 805,000 | | | | 830,709 | |
British Telecommunications
4.50% 12/4/23 | | | 705,000 | | | | 738,041 | |
C&W Senior Financing 144A
7.50% 10/15/26 # | | | 615,000 | | | | 634,987 | |
CCO Holdings | | | | | | | | |
144A 5.00% 2/1/28 # | | | 900,000 | | | | 892,125 | |
144A 5.875% 5/1/27 # | | | 400,000 | | | | 416,120 | |
Charter Communications
Operating | | | | | |
3.579% 7/23/20 | | | 500,000 | | | | 503,775 | |
4.464% 7/23/22 | | | 2,100,000 | | | | 2,174,300 | |
4.50% 2/1/24 | | | 800,000 | | | | 833,824 | |
5.05% 3/30/29 | | | 2,420,000 | | | | 2,552,932 | |
Comcast | | | | | | | | |
3.417% (LIBOR03M + | | | | | | | | |
0.63%) 4/15/24● | | | 640,000 | | | | 640,933 | |
3.70% 4/15/24 | | | 2,970,000 | | | | 3,070,477 | |
Comunicaciones Celulares Via Comcel Trust 144A
6.875% 2/6/24 # | | | 795,000 | | | | 828,291 | |
Crown Castle Towers | | | | | | | | |
144A 3.663% 5/15/25 # | | | 110,000 | | | | 111,219 | |
144A 4.241% 7/15/28 # | | | 440,000 | | | | 451,609 | |
CSC Holdings | | | | | | | | |
6.75% 11/15/21 | | | 400,000 | | | | 428,500 | |
144A 7.75% 7/15/25 # | | | 420,000 | | | | 451,500 | |
Deutsche Telekom | | | | | | | | |
International Finance | | | | | | | | |
1.25% 10/6/23 | | GBP | 318,000 | | | | 407,879 | |
144A 1.95% 9/19/21 # | | | 1,155,000 | | | | 1,129,166 | |
144A 4.375% 6/21/28 # | | | 1,055,000 | | | | 1,098,896 | |
6.50% 4/8/22 | | GBP | 36,000 | | | | 53,678 | |
Digicel Group One 144A
8.25% 12/30/22 # | | | 234,000 | | | | 144,495 | |
Digicel Group Two
144A 8.25% 9/30/22 # | | | 221,000 | | | | 75,693 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | |
| |
Communications (continued) | | | | | | | | |
Digicel Group Two
144A PIK 9.125%
4/1/24 # | | | 890,000 | | | $ | 244,750 | |
Discovery Communications
5.20% 9/20/47 | | | 1,240,000 | | | | 1,209,353 | |
DISH DBS 5.125% 5/1/20 | | | 200,000 | | | | 201,750 | |
Fox | | | | | | | | |
144A 3.666% 1/25/22 # | | | 900,000 | | | | 918,399 | |
144A 5.576% 1/25/49 # | | | 2,515,000 | | | | 2,850,232 | |
Gray Television 144A
5.875% 7/15/26 # | | | 380,000 | | | | 387,676 | |
GTP Acquisition Partners I
144A 2.35% 6/15/20 # | | | 530,000 | | | | 524,150 | |
Level 3 Financing
5.375% 5/1/25 | | | 786,000 | | | | 797,633 | |
Millicom International Cellular
144A 6.25% 3/25/29 # | | | 630,000 | | | | 642,480 | |
Myriad International Holdings
144A 4.85% 7/6/27 # | | | 570,000 | | | | 586,756 | |
NBCUniversal Media
5.15% 4/30/20 | | | 900,000 | | | | 922,839 | |
SBA Tower Trust 144A
2.898% 10/15/19 # | | | 600,000 | | | | 599,306 | |
Sirius XM Radio 144A
5.375% 4/15/25 # | | | 287,000 | | | | 295,610 | |
Sprint | | | | | | | | |
7.125% 6/15/24 | | | 185,000 | | | | 188,237 | |
7.625% 3/1/26 | | | 200,000 | | | | 203,500 | |
7.875% 9/15/23 | | | 916,000 | | | | 964,090 | |
Sprint Capital 6.90% 5/1/19 | | | 2,600,000 | | | | 2,613,000 | |
Sprint Communications | | | | | | | | |
144A 7.00% 3/1/20 # | | | 400,000 | | | | 411,500 | |
7.00% 8/15/20 | | | 260,000 | | | | 269,100 | |
Sprint Spectrum 144A
4.738% 3/20/25 # | | | 1,465,000 | | | | 1,485,144 | |
Telefonica Emisiones
5.52% 3/1/49 | | | 2,500,000 | | | | 2,629,893 | |
TELUS 4.60% 11/16/48 | | | 70,000 | | | | 74,214 | |
Tencent Holdings 144A
2.985% 1/19/23 # | | | 530,000 | | | | 528,192 | |
Time Warner Cable
7.30% 7/1/38 | | | 2,120,000 | | | | 2,476,280 | |
Time Warner Entertainment
8.375% 3/15/23 | | | 1,415,000 | | | | 1,657,026 | |
T-Mobile USA
6.50% 1/15/26 | | | 540,000 | | | | 577,800 | |
Turk Telekomunikasyon 144A
6.875% 2/28/25 # | | | 700,000 | | | | 672,295 | |
Unitymedia 144A
6.125% 1/15/25 # | | | 215,000 | | | | 224,223 | |
62
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | |
| |
Communications (continued) | | | | | |
UPCB Finance IV 144A
5.375% 1/15/25 # | | | 488,000 | | | $ | 496,540 | |
Verizon Communications | | | | | |
3.25% 2/17/26 | | EUR | 323,000 | | | | 422,206 | |
3.376% 2/15/25 | | | 357,000 | | | | 362,291 | |
3.784% (LIBOR03M + | | | | | | | | |
1.10%) 5/15/25● | | | 4,375,000 | | | | 4,379,138 | |
144A 4.016%
12/3/29 # | | | 3,203,000 | | | | 3,317,164 | |
4.125% 3/16/27 | | | 1,500,000 | | | | 1,571,821 | |
4.329% 9/21/28 | | | 3,427,000 | | | | 3,636,644 | |
4.50% 8/17/27 | | AUD | 900,000 | | | | 692,431 | |
4.50% 8/10/33 | | | 2,545,000 | | | | 2,698,743 | |
4.522% 9/15/48 | | | 315,000 | | | | 324,210 | |
Viacom 4.375% 3/15/43 | | | 1,875,000 | | | | 1,685,902 | |
Virgin Media Secured Finance
144A 5.25% 1/15/26 # | | | 730,000 | | | | 737,300 | |
Vodafone Group | | | | | | | | |
3.769% (LIBOR03M + | | | | | | | | |
0.99%) 1/16/24 • | | | 1,535,000 | | | | 1,525,516 | |
7.00% 4/4/79 µ | | | 1,730,000 | | | | 1,761,489 | |
VTR Finance 144A
6.875% 1/15/24 # | | | 631,000 | | | | 649,141 | |
Warner Media | | | | | | | | |
3.875% 1/15/26 | | | 535,000 | | | | 537,701 | |
4.85% 7/15/45 | | | 905,000 | | | | 913,828 | |
Zayo Group | | | | | | | | |
144A 5.75% 1/15/27 # | | | 405,000 | | | | 405,121 | |
6.375% 5/15/25 | | | 94,000 | | | | 94,823 | |
| | | | | | | | |
| | | | | | | 86,636,076 | |
| | | | | | | | |
Consumer Cyclical – 2.35% | | | | | |
AMC Entertainment Holdings
6.125% 5/15/27 | | | 405,000 | | | | 368,044 | |
Best Buy 4.45% 10/1/28 | | | 1,820,000 | | | | 1,846,726 | |
BMW US Capital | | | | | | | | |
144A 1.50% 4/11/19 # | | | 500,000 | | | | 499,861 | |
144A 3.188% (LIBOR03M + 0.50%) 8/13/21 #● | | | 500,000 | | | | 499,133 | |
Boyd Gaming
6.375% 4/1/26 | | | 410,000 | | | | 425,887 | |
Daimler Finance North | | | | | | | | |
America | | | | | | | | |
144A 2.00% 7/6/21 # | | | 400,000 | | | | 391,496 | |
144A 3.35% 2/22/23 # | | | 775,000 | | | | 784,264 | |
144A 3.578% (LIBOR03M + 0.84%) 5/4/23 #● | | | 1,200,000 | | | | 1,198,175 | |
Dollar Tree
3.70% 5/15/23 | | | 2,735,000 | | | | 2,776,348 | |
DR Horton
4.00% 2/15/20 | | | 400,000 | | | | 403,434 | |
Ford Motor Credit
1.897% 8/12/19 | | | 1,000,000 | | | | 995,889 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | |
| |
Consumer Cyclical (continued) | | | | | |
Ford Motor Credit | | | | | |
3.20% 1/15/21 | | | 4,200,000 | | | $ | 4,141,924 | |
3.532% (LIBOR03M + 0.93%) 9/24/20● | | | 1,900,000 | | | | 1,892,486 | |
3.867% (LIBOR03M + 1.27%) 3/28/22● | | | 400,000 | | | | 386,676 | |
4.14% 2/15/23 | | | 2,420,000 | | | | 2,371,978 | |
5.345% (LIBOR03M + 2.55%) 1/7/21● | | | 2,200,000 | | | | 2,221,613 | |
5.75% 2/1/21 | | | 700,000 | | | | 721,254 | |
5.935% (LIBOR03M + 3.14%) 1/7/22● | | | 2,175,000 | | | | 2,221,030 | |
General Motors
6.75% 4/1/46 | | | 245,000 | | | | 255,825 | |
General Motors Financial | | | | | |
3.647% (LIBOR03M + 0.85%) 4/9/21● | | | 500,000 | | | | 496,343 | |
4.35% 4/9/25 | | | 1,530,000 | | | | 1,525,779 | |
4.375% 9/25/21 | | | 1,000,000 | | | | 1,021,884 | |
5.10% 1/17/24 | | | 1,235,000 | | | | 1,282,820 | |
5.25% 3/1/26 | | | 1,765,000 | | | | 1,824,428 | |
GLP Capital
5.30% 1/15/29 | | | 485,000 | | | | 511,156 | |
Hilton Domestic Operating
144A 5.125% 5/1/26 # | | | 1,000,000 | | | | 1,017,500 | |
Home Depot 4.50% 12/6/48 | | | 585,000 | | | | 650,541 | |
JD.com 3.125% 4/29/21 | | | 930,000 | | | | 919,811 | |
Live Nation Entertainment
144A 5.625% 3/15/26 # | | | 465,000 | | | | 481,275 | |
Lowe’s | | | | | | | | |
3.021% (LIBOR03M + 0.42%) 9/10/19● | | | 520,000 | | | | 520,547 | |
4.05% 5/3/47 | | | 170,000 | | | | 159,843 | |
Marriott International | | | | | | | | |
4.15% 12/1/23 | | | 450,000 | | | | 468,401 | |
4.50% 10/1/34 | | | 160,000 | | | | 163,881 | |
McDonald’s 3.195% (LIBOR03M + 0.43%) 10/28/21● | | | 2,600,000 | | | | 2,601,345 | |
MGM Resorts International
5.25% 3/31/20 | | | 200,000 | | | | 204,250 | |
5.75% 6/15/25 | | | 620,000 | | | | 645,575 | |
6.625% 12/15/21 | | | 300,000 | | | | 321,375 | |
6.75% 10/1/20 | | | 700,000 | | | | 735,875 | |
Nissan Motor Acceptance
144A 2.15% 9/28/20 # | | | 500,000 | | | | 491,612 | |
Penn National Gaming 144A
5.625% 1/15/27 # | | | 505,000 | | | | 492,375 | |
Penske Automotive Group
5.50% 5/15/26 | | | 178,000 | | | | 175,997 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Corporate Bonds(continued) | |
| |
Consumer Cyclical (continued) | |
Royal Caribbean Cruises
3.70% 3/15/28 | | | 1,440,000 | | | $ | 1,390,458 | |
Sands China | | | | | | | | |
4.60% 8/8/23 | | | 300,000 | | | | 309,977 | |
5.125% 8/8/25 | | | 470,000 | | | | 490,744 | |
5.40% 8/8/28 | | | 1,800,000 | | | | 1,891,858 | |
Schaeffler Finance
3.25% 5/15/25 | | EUR | 2,600,000 | | | | 3,036,391 | |
144A 4.75%
5/15/23 # | | | 200,000 | | | | 202,700 | |
Scientific Games International | | | | | | | | |
144A 8.25%
3/15/26 # | | | 430,000 | | | | 439,675 | |
10.00% 12/1/22 | | | 735,000 | | | | 776,344 | |
Target 3.375% 4/15/29 | | | 985,000 | | | | 999,744 | |
Toyota Motor
3.419% 7/20/23 | | | 375,000 | | | | 385,801 | |
Toyota Motor Credit 3.083% (LIBOR03M + 0.40%) 5/17/22● | | | 4,000,000 | | | | 3,996,645 | |
Wolverine World Wide 144A
5.00% 9/1/26 # | | | 400,000 | | | | 390,000 | |
ZF North America Capital
144A 4.00%
4/29/20 # | | | 250,000 | | | | 250,200 | |
| | | | | | | | |
| | | | | | | 55,675,193 | |
| | | | | | | | |
ConsumerNon-Cyclical – 3.12% | |
Abbott Laboratories
2.90% 11/30/21 | | | 1,045,000 | | | | 1,050,043 | |
AbbVie | | | | | | | | |
2.85% 5/14/23 | | | 900,000 | | | | 890,869 | |
3.20% 5/14/26 | | | 500,000 | | | | 486,995 | |
3.75% 11/14/23 | | | 1,200,000 | | | | 1,233,134 | |
4.25% 11/14/28 | | | 1,345,000 | | | | 1,376,313 | |
Adani Abbot Point Terminal
144A 4.45%
12/15/22 # | | | 1,500,000 | | | | 1,340,719 | |
Allergan Finance
3.25% 10/1/22 | | | 300,000 | | | | 300,345 | |
Allergan Funding | | | | | | | | |
3.00% 3/12/20 | | | 1,400,000 | | | | 1,399,570 | |
3.45% 3/15/22 | | | 1,000,000 | | | | 1,009,183 | |
Altria Group
4.80% 2/14/29 | | | 1,275,000 | | | | 1,316,867 | |
Anheuser-Busch InBev
Worldwide | | | | | | | | |
144A 3.65% 2/1/26 # | | | 1,365,000 | | | | 1,371,289 | |
4.75% 1/23/29 | | | 640,000 | | | | 682,092 | |
AstraZeneca | | | | | | | | |
3.50% 8/17/23 | | | 955,000 | | | | 975,108 | |
4.00% 1/17/29 | | | 965,000 | | | | 1,015,156 | |
Atento Luxco 1 144A
6.125% 8/10/22 # | | | 740,000 | | | | 737,044 | |
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Corporate Bonds(continued) | | | | | | | | |
| |
ConsumerNon-Cyclical (continued) | | | | | |
BAT Capital | | | | | | | | |
2.297% 8/14/20 | | | 830,000 | | | $ | 822,029 | |
2.764% 8/15/22 | | | 615,000 | | | | 605,436 | |
3.222% 8/15/24 | | | 3,425,000 | | | | 3,352,797 | |
BAT International Finance
144A 2.75% 6/15/20 # | | | 700,000 | | | | 697,516 | |
Bausch Health 144A
5.50% 11/1/25 # | | | 395,000 | | | | 404,875 | |
Becton Dickinson
3.363% 6/6/24 | | | 2,000,000 | | | | 2,003,596 | |
Boston Scientific
3.375% 5/15/22 | | | 800,000 | | | | 811,369 | |
Bunge Finance
4.35% 3/15/24 | | | 2,260,000 | | | | 2,291,130 | |
Campbell Soup
3.65% 3/15/23 | | | 1,055,000 | | | | 1,070,849 | |
Cardinal Health
1.948% 6/14/19 | | | 1,200,000 | | | | 1,197,909 | |
Central Nippon Expressway
2.079% 11/5/19 | | | 1,200,000 | | | | 1,195,206 | |
Charles River Laboratories
International 144A
5.50% 4/1/26 # | | | 360,000 | | | | 374,400 | |
Cigna
144A 3.677% (LIBOR03M
+ 0.89%) 7/15/23 #● | | | 1,475,000 | | | | 1,468,672 | |
144A 4.125% 11/15/25 # | | | 3,540,000 | | | | 3,668,373 | |
Conagra Brands | | | | | | | | |
4.60% 11/1/25 | | | 2,455,000 | | | | 2,585,555 | |
5.30% 11/1/38 | | | 570,000 | | | | 580,205 | |
Cott Holdings 144A
5.50% 4/1/25 # | | | 260,000 | | | | 263,250 | |
CVS Health | | | | | | | | |
2.125% 6/1/21 | | | 450,000 | | | | 442,272 | |
3.231% (LIBOR03M + 0.63%) 3/9/20● | | | 1,400,000 | | | | 1,403,588 | |
3.35% 3/9/21 | | | 500,000 | | | | 504,262 | |
4.30% 3/25/28 | | | 3,480,000 | | | | 3,532,596 | |
5.05% 3/25/48 | | | 25,000 | | | | 25,236 | |
CVS Pass Through Trust 144A
5.773% 1/10/33 #◆ | | | 76,334 | | | | 83,036 | |
Eli Lilly & Co. | | | | | | | | |
3.375% 3/15/29 | | | 565,000 | | | | 580,849 | |
3.95% 3/15/49 | | | 395,000 | | | | 405,674 | |
Encompass Health | | | | | | | | |
5.75% 11/1/24 | | | 513,000 | | | | 521,336 | |
5.75% 9/15/25 | | | 370,000 | | | | 377,863 | |
Equifax 3.554% (LIBOR03M
+ 0.87%) 8/15/21● | | | 700,000 | | | | 695,892 | |
64
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Corporate Bonds(continued) | |
| |
ConsumerNon-Cyclical (continued) | |
General Mills
3.70% 10/17/23 | | | 1,100,000 | | | $ | 1,128,646 | |
HCA | | | | | | | | |
5.375% 2/1/25 | | | 500,000 | | | | 531,250 | |
5.875% 2/15/26 | | | 595,000 | | | | 644,087 | |
7.58% 9/15/25 | | | 30,000 | | | | 34,050 | |
Imperial Brands Finance | | | | | | | | |
144A 2.95% 7/21/20 # | | | 700,000 | | | | 698,072 | |
144A 3.75% 7/21/22 # | | | 470,000 | | | | 476,607 | |
JBS Investments 144A
7.25% 4/3/24 # | | | 465,000 | | | | 478,369 | |
JBS USA | | | | | | | | |
144A 5.75% 6/15/25 # | | | 225,000 | | | | 231,469 | |
144A 5.875% 7/15/24 # | | | 320,000 | | | | 330,000 | |
KAR Auction Services 144A
5.125% 6/1/25 # | | | 290,000 | | | | 288,187 | |
Kernel Holding 144A
8.75% 1/31/22 # | | | 890,000 | | | | 912,993 | |
Kraft Heinz Foods 3.517%
(LIBOR03M + 0.82%) 8/10/22● | | | 300,000 | | | | 299,681 | |
Marfrig Holdings Europe
144A 8.00% 6/8/23 # | | | 935,000 | | | | 967,725 | |
Mars | | | | | | | | |
144A 3.875% 4/1/39 # | | | 335,000 | | | | 338,296 | |
144A 3.95% 4/1/49 # | | | 460,000 | | | | 468,541 | |
Merck & Co. 3.40% 3/7/29 | | | 935,000 | | | | 961,380 | |
MHP | | | | | | | | |
144A 6.95% 4/3/26 # | | | 455,000 | | | | 429,593 | |
144A 7.75% 5/10/24 # | | | 520,000 | | | | 526,209 | |
MPH Acquisition Holdings
144A 7.125% 6/1/24 # | | | 190,000 | | | | 190,000 | |
Nestle Holdings 144A
4.00% 9/24/48 # | | | 150,000 | | | | 157,746 | |
New York and Presbyterian Hospital 4.063% 8/1/56 | | | 690,000 | | | | 713,191 | |
Pernod Ricard 144A
4.45% 1/15/22 # | | | 1,410,000 | | | | 1,465,695 | |
Pilgrim’s Pride 144A
5.75% 3/15/25 # | | | 365,000 | | | | 370,475 | |
Post Holdings 144A
5.75% 3/1/27 # | | | 325,000 | | | | 327,844 | |
Prime Security Services Borrower | | | | | | | | |
144A 5.75% 4/15/26 # | | | 90,000 | | | | 90,225 | |
144A 9.25% 5/15/23 # | | | 389,000 | | | | 409,423 | |
Rede D’or Finance 144A
4.95% 1/17/28 # | | | 945,000 | | | | 893,034 | |
Reynolds American
4.00% 6/12/22 | | | 900,000 | | | | 919,913 | |
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Corporate Bonds(continued) | |
| |
ConsumerNon-Cyclical (continued) | | | | | |
Shire Acquisitions Investments
Ireland 2.875% 9/23/23 | | | 300,000 | | | $ | 296,621 | |
Takeda Pharmaceutical 144A
4.40% 11/26/23 # | | | 2,235,000 | | | | 2,351,073 | |
Tenet Healthcare
5.125% 5/1/25 | | | 705,000 | | | | 710,323 | |
Teva Pharmaceutical Finance Netherlands II
1.125% 10/15/24 | | EUR | 300,000 | | | | 294,857 | |
Teva Pharmaceutical Finance Netherlands III | | | | | | | | |
6.00% 4/15/24 | | | 2,250,000 | | | | 2,259,910 | |
6.75% 3/1/28 | | | 720,000 | | | | 727,062 | |
Tyson Foods 2.65% 8/15/19 | | | 1,500,000 | | | | 1,498,837 | |
UnitedHealth Group | | | | | | | | |
3.50% 2/15/24 | | | 425,000 | | | | 438,068 | |
3.70% 12/15/25 | | | 390,000 | | | | 405,223 | |
Universal Health Services
144A 5.00% 6/1/26 # | | | 210,000 | | | | 214,463 | |
WellCare Health Plans 144A
5.375% 8/15/26 # | | | 745,000 | | | | 781,319 | |
Zimmer Biomet Holdings | | | | | | | | |
3.15% 4/1/22 | | | 300,000 | | | | 301,046 | |
4.625% 11/30/19 | | | 1,270,000 | | | | 1,283,783 | |
| | | | | | | | |
| | | | | | | 73,995,784 | |
| | | | | | | | |
Energy – 3.21% | | | | | | | | |
Abu Dhabi Crude Oil Pipeline
144A 4.60% 11/2/47 # | | | 780,000 | | | | 806,702 | |
Antero Midstream Partners
144A 5.75% 3/1/27 # | | | 1,400,000 | | | | 1,424,500 | |
Cheniere Energy Partners
5.25% 10/1/25 | | | 620,000 | | | | 636,275 | |
Chesapeake Energy
8.00% 1/15/25 | | | 275,000 | | | | 281,875 | |
Chevron 3.145% (LIBOR03M
+ 0.53%) 3/3/22● | | | 575,000 | | | | 579,041 | |
ConocoPhillips 3.584%
(LIBOR03M + 0.90%) 5/15/22● | | | 575,000 | | | | 581,570 | |
Continental Resources
4.375% 1/15/28 | | | 1,100,000 | | | | 1,133,197 | |
Crestwood Midstream
Partners 5.75% 4/1/25 | | | 405,000 | | | | 417,150 | |
Diamond Offshore Drilling
7.875% 8/15/25 | | | 290,000 | | | | 281,300 | |
Ecopetrol 5.875% 9/18/23 | | | 30,000 | | | | 32,843 | |
Enable Midstream Partners
4.95% 5/15/28 | | | 700,000 | | | | 712,606 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | |
| |
Energy (continued) | | | | | |
Enbridge | | | | | | | | |
3.183% (LIBOR03M + 0.40%) 1/10/20● | | | 3,750,000 | | | $ | 3,748,710 | |
3.311% (LIBOR03M + 0.70%) 6/15/20● | | | 2,050,000 | | | | 2,052,128 | |
6.00% 1/15/77 µ | | | 555,000 | | | | 551,656 | |
6.25% 3/1/78 µ | | | 420,000 | | | | 417,679 | |
Enbridge Energy Partners | | | | | | | | |
4.375% 10/15/20 | | | 230,000 | | | | 235,113 | |
5.20% 3/15/20 | | | 655,000 | | | | 669,369 | |
5.50% 9/15/40 | | | 380,000 | | | | 427,642 | |
Energy Transfer Operating | | | | | | | | |
4.50% 4/15/24 | | | 165,000 | | | | 172,487 | |
5.25% 4/15/29 | | | 505,000 | | | | 542,866 | |
6.25% 4/15/49 | | | 565,000 | | | | 634,152 | |
6.625%µy | | | 1,235,000 | | | | 1,175,874 | |
Energy Transfer Partners | | | | | | | | |
5.00% 10/1/22 | | | 1,500,000 | | | | 1,582,753 | |
5.75% 9/1/20 | | | 400,000 | | | | 412,699 | |
Ensco 7.75% 2/1/26 | | | 186,000 | | | | 157,867 | |
Exxon Mobil 2.978%
(LIBOR03M + 0.37%)
3/6/22● | | | 1,125,000 | | | | 1,134,206 | |
Florida Gas Transmission
144A 7.90% 5/15/19 # | | | 320,000 | | | | 321,843 | |
Gazprom OAO Via Gaz
Capital 144A 4.95% 3/23/27 # | | | 1,065,000 | | | | 1,068,191 | |
Genesis Energy 6.75% 8/1/22 | | | 285,000 | | | | 292,837 | |
Geopark 144A 6.50% 9/21/24 # | | | 655,000 | | | | 659,913 | |
Husky Energy 4.40% 4/15/29 | | | 650,000 | | | | 659,888 | |
KazMunayGas National 144A 6.375% 10/24/48 # | | | 730,000 | | | | 800,137 | |
Kinder Morgan Energy Partners | | | | | | | | |
5.00% 10/1/21 | | | 620,000 | | | | 647,292 | |
6.85% 2/15/20 | | | 2,000,000 | | | | 2,065,101 | |
Laredo Petroleum
6.25% 3/15/23 | | | 285,000 | | | | 255,787 | |
Marathon Oil | | | | | | | | |
2.80% 11/1/22 | | | 115,000 | | | | 113,674 | |
4.40% 7/15/27 | | | 2,190,000 | | | | 2,258,151 | |
MPLX | | | | | | | | |
4.80% 2/15/29 | | | 805,000 | | | | 848,608 | |
4.875% 12/1/24 | | | 2,620,000 | | | | 2,798,786 | |
5.50% 2/15/49 | | | 835,000 | | | | 893,530 | |
Murphy Oil 6.875% 8/15/24 | | | 885,000 | | | | 937,529 | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | |
| |
Energy (continued) | | | | | | | | |
Murphy Oil USA
5.625% 5/1/27 | | | 190,000 | | | $ | 197,600 | |
Noble Energy | | | | | | | | |
3.85% 1/15/28 | | | 1,100,000 | | | | 1,085,588 | |
3.90% 11/15/24 | | | 160,000 | | | | 161,681 | |
4.95% 8/15/47 | | | 865,000 | | | | 857,200 | |
5.05% 11/15/44 | | | 250,000 | | | | 249,218 | |
NuStar Logistics
5.625% 4/28/27 | | | 285,000 | | | | 285,713 | |
Oasis Petroleum 144A
6.25% 5/1/26 # | | | 515,000 | | | | 491,825 | |
ONEOK | | | | | | | | |
4.35% 3/15/29 | | | 1,500,000 | | | | 1,529,803 | |
7.50% 9/1/23 | | | 2,035,000 | | | | 2,357,432 | |
Pertamina Persero 144A
4.875% 5/3/22 # | | | 525,000 | | | | 547,172 | |
Petrobras Global Finance | | | | | | | | |
5.999% 1/27/28 | | | 5,191,000 | | | | 5,266,269 | |
6.125% 1/17/22 | | | 170,000 | | | | 179,860 | |
6.85% 6/5/15 | | | 1,700,000 | | | | 1,650,615 | |
6.90% 3/19/49 | | | 590,000 | | | | 584,926 | |
7.25% 3/17/44 | | | 600,000 | | | | 627,975 | |
7.375% 1/17/27 | | | 385,000 | | | | 425,714 | |
Petroleos Mexicanos | | | | | | | | |
6.251% (LIBOR03M + 3.65%) 3/11/22● | | | 110,000 | | | | 114,125 | |
6.50% 3/13/27 | | | 390,000 | | | | 392,617 | |
6.75% 9/21/47 | | | 115,000 | | | | 106,092 | |
Precision Drilling 144A
7.125% 1/15/26 # | | | 165,000 | | | | 164,433 | |
Rio Oil Finance Trust Series2014-1
9.25% 7/6/24 | | | 158,715 | | | | 173,398 | |
Sabine Pass Liquefaction | | | | | | | | |
5.625% 3/1/25 | | | 1,455,000 | | | | 1,601,289 | |
5.75% 5/15/24 | | | 7,515,000 | | | | 8,290,173 | |
5.875% 6/30/26 | | | 940,000 | | | | 1,047,075 | |
6.25% 3/15/22 | | | 400,000 | | | | 432,167 | |
Schlumberger Holdings | | | | | | | | |
144A 3.75% 5/1/24 # | | | 1,245,000 | | | | 1,273,614 | |
144A 4.30% 5/1/29 # | | | 1,760,000 | | | | 1,809,063 | |
Shell International Finance 3.147% (LIBOR03M + 0.45%) 5/11/20● | | | 595,000 | | | | 597,858 | |
Sinopec Group Overseas Development 2015
2.50% 4/28/20 | | | 1,200,000 | | | | 1,194,524 | |
Southwestern Energy
7.75% 10/1/27 | | | 195,000 | | | | 200,119 | |
66
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | |
| |
Energy (continued) | | | | | | | | |
Spectra Energy Partners 3.299%
(LIBOR03M + 0.70%) 6/5/20● | | | 500,000 | | | $ | 500,160 | |
Summit Midstream Holdings
5.75% 4/15/25 | | | 210,000 | | | | 199,237 | |
Targa Resources Partners
5.375% 2/1/27 | | | 340,000 | | | | 349,350 | |
Tecpetrol 144A
4.875% 12/12/22 # | | | 685,000 | | | | 635,344 | |
Transcanada Trust
5.875% 8/15/76 µ | | | 560,000 | | | | 568,974 | |
Transocean 144A
9.00% 7/15/23 # | | | 70,000 | | | | 74,900 | |
Transocean Proteus 144A
6.25% 12/1/24 # | | | 260,000 | | | | 268,125 | |
Transportadora de Gas del Sur
144A 6.75% 5/2/25 # | | | 520,000 | | | | 491,920 | |
Tullow Oil 144A
7.00% 3/1/25 # | | | 960,000 | | | | 969,072 | |
Valero Energy
4.00% 4/1/29 | | | 1,090,000 | | | | 1,099,399 | |
Whiting Petroleum
6.625% 1/15/26 | | | 140,000 | | | | 137,900 | |
Woodside Finance | | | | | | | | |
144A 3.70% 9/15/26 # | | | 400,000 | | | | 393,230 | |
144A 4.60% 5/10/21 # | | | 600,000 | | | | 613,423 | |
YPF 144A 51.729%
(BADLARPP + 4.00%) 7/7/20 #● | | | 1,205,000 | | | | 489,724 | |
| | | | | | | | |
| | | | | | 76,109,423 | |
| | | | | | | | |
Finance Companies – 1.33% | |
AerCap Global Aviation Trust
144A 6.50% 6/15/45 #µ | | | 810,000 | | | | 823,163 | |
AerCap Ireland Capital | | | | | | | | |
3.65% 7/21/27 | | | 1,505,000 | | | | 1,408,512 | |
4.45% 10/1/25 | | | 1,200,000 | | | | 1,210,965 | |
4.45% 4/3/26 | | | 150,000 | | | | 150,544 | |
4.625% 10/30/20 | | | 1,000,000 | | | | 1,024,113 | |
4.625% 7/1/22 | | | 1,100,000 | | | | 1,135,805 | |
Air Lease | | | | | | | | |
3.00% 9/15/23 | | | 1,135,000 | | | | 1,110,974 | |
4.25% 2/1/24 | | | 2,200,000 | | | | 2,256,848 | |
Aviation Capital Group | | | | | | | | |
144A 4.375% 1/30/24 # | | | 1,730,000 | | | | 1,764,725 | |
144A 4.875% 10/1/25 # | | | 1,090,000 | | | | 1,123,734 | |
144A 6.75% 4/6/21 # | | | 500,000 | | | | 533,151 | |
BOC Aviation | | | | | | | | |
144A 2.375% 9/15/21 # | | | 910,000 | | | | 888,963 | |
2.375% 9/15/21 | | | 600,000 | | | | 586,129 | |
3.00% 5/23/22 | | | 300,000 | | | | 295,695 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds (continued) | | | | | |
| |
Finance Companies (continued) | | | | | |
Citicorp Lease Pass Through Trust Series1999-1 144A
8.04% 12/15/19 #◆ | | | 148,870 | | | $ | 154,132 | |
CPPIB Capital 144A
3.125% 9/25/23 # | | | 775,000 | | | | 796,839 | |
DAE Funding | | | | | | | | |
144A 5.25% 11/15/21 # | | | 875,000 | | | | 894,687 | |
144A 5.75% 11/15/23 # | | | 275,000 | | | | 283,250 | |
GATX 3.453% (LIBOR03M + 0.72%) 11/5/21● | | | 2,100,000 | | | | 2,090,084 | |
GE Capital International Funding Unlimited | | | | | | | | |
2.342% 11/15/20 | | | 251,000 | | | | 247,956 | |
4.418% 11/15/35 | | | 1,700,000 | | | | 1,577,838 | |
Goodman HK Finance
4.375% 6/19/24 | | | 550,000 | | | | 565,413 | |
Intercontinental Exchange
3.45% 9/21/23 | | | 1,225,000 | | | | 1,256,041 | |
3.75% 9/21/28 | | | 225,000 | | | | 233,918 | |
International Lease Finance | | | | | | | | |
6.25% 5/15/19 | | | 200,000 | | | | 200,737 | |
8.625% 1/15/22 | | | 1,455,000 | | | | 1,653,680 | |
Navient | | | | | | | | |
4.875% 6/17/19 | | | 276,000 | | | | 276,517 | |
8.00% 3/25/20 | | | 200,000 | | | | 208,500 | |
NFP 144A
6.875% 7/15/25 # | | | 639,000 | | | | 613,440 | |
ORIX
3.20% 1/19/22 | | | 500,000 | | | | 503,387 | |
SMBC Aviation Capital Finance 144A
3.00% 7/15/22 # | | | 400,000 | | | | 395,467 | |
Springleaf Finance | | | | | | | | |
6.00% 6/1/20 | | | 100,000 | | | | 103,250 | |
6.125% 3/15/24 | | | 1,500,000 | | | | 1,537,470 | |
8.25% 12/15/20 | | | 2,600,000 | | | | 2,798,250 | |
Temasek Financial I 144A
2.375% 1/23/23 # | | | 560,000 | | | | 554,504 | |
Waha Aerospace
3.925% 7/28/20 | | | 315,000 | | | | 316,019 | |
| | | | | | | | |
| | | | | | | 31,574,700 | |
| | | | | | | | |
Insurance – 1.00% | |
Acrisure 144A
7.00% 11/15/25 # | | | 380,000 | | | | 343,900 | |
AIA Group 144A
3.90% 4/6/28 # | | | 1,000,000 | | | | 1,034,222 | |
Ambac Assurance 144A
5.10% 6/7/20 # | | | 40,315 | | | | 56,844 | |
Ambac LSNI 144A 7.592%
(LIBOR03M + 5.00%) 2/12/23 #● | | | 128,780 | | | | 130,068 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | | | | | |
| |
Insurance (continued) | | | | | |
AssuredPartners 144A 7.00% 8/15/25 # | | | 553,000 | | | $ | 514,290 | |
Athene Global Funding 144A 3.826% (LIBOR03M + 1.23%) 7/1/22 #● | | | 700,000 | | | | 703,518 | |
AXA Equitable Holdings | | | | | | | | |
4.35% 4/20/28 | | | 365,000 | | | | 371,226 | |
5.00% 4/20/48 | | | 2,030,000 | | | | 1,987,354 | |
Brighthouse Financial | | | | | | | | |
3.70% 6/22/27 | | | 615,000 | | | | 555,293 | |
4.70% 6/22/47 | | | 1,020,000 | | | | 813,778 | |
Harborwalk Funding Trust 144A
5.077% 2/15/69 #µ | | | 660,000 | | | | 696,881 | |
HUB International 144A
7.00% 5/1/26 # | | | 90,000 | | | | 89,325 | |
Liberty Mutual Group 144A
4.569% 2/1/29 # | | | 320,000 | | | | 333,427 | |
Marsh & McLennan
4.375% 3/15/29 | | | 2,960,000 | | | | 3,138,764 | |
MetLife 144A
9.25% 4/8/38 # | | | 1,100,000 | | | | 1,490,703 | |
MetLife Capital Trust IV 144A
7.875% 12/15/37 # | | | 300,000 | | | | 366,431 | |
Nationstar Mortgage Holdings 144A
8.125% 7/15/23 # | | | 2,000,000 | | | | 2,065,000 | |
Nuveen Finance 144A 4.125% 11/1/24 # | | | 770,000 | | | | 810,209 | |
Progressive
4.00% 3/1/29 | | | 985,000 | | | | 1,053,816 | |
Prudential Financial | | | | | | | | |
4.35% 2/25/50 | | | 1,250,000 | | | | 1,296,060 | |
5.375% 5/15/45 µ | | | 765,000 | | | | 774,796 | |
Swiss Re Finance Luxembourg 144A
5.00% 4/2/49 #µ | | | 400,000 | | | | 405,798 | |
USI 144A
6.875% 5/1/25 # | | | 1,338,000 | | | | 1,302,877 | |
Voya Financial
4.70% 1/23/48 µ | | | 795,000 | | | | 686,267 | |
Willis North America | | | | | | | | |
3.60% 5/15/24 | | | 370,000 | | | | 372,767 | |
4.50% 9/15/28 | | | 870,000 | | | | 906,161 | |
XLIT | | | | | | | | |
5.245% (LIBOR03M + 2.458%)y● | | | 510,000 | | | | 491,194 | |
5.50% 3/31/45 | | | 725,000 | | | | 803,521 | |
| | | | | | | | |
| | | | | | | 23,594,490 | |
| | | | | | | | |
Natural Gas – 0.19% | | | | | |
AmeriGas Partners
5.875% 8/20/26 | | | 465,000 | | | | 466,163 | |
Brooklyn Union Gas 144A
3.865% 3/4/29 # | | | 2,605,000 | | | | 2,689,520 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | | | | | |
| |
Natural Gas (continued) | | | | | |
KazTransGas 144A
4.375% 9/26/27 # | | | 630,000 | | | $ | 612,449 | |
NiSource 5.65%µy | | | 875,000 | | | | 855,313 | |
| | | | | | | | |
| | | | | | | 4,623,445 | |
| | | | | | | | |
Real Estate Investment Trusts – 0.82% | | | | | |
American Tower | | | | | | | | |
3.00% 6/15/23 | | | 600,000 | | | | 598,583 | |
3.375% 5/15/24 | | | 500,000 | | | | 503,159 | |
5.05% 9/1/20 | | | 500,000 | | | | 515,374 | |
American Tower Trust I 144A
3.07% 3/15/23 # | | | 1,285,000 | | | | 1,283,049 | |
Corporate Office Properties
3.60% 5/15/23 | | | 690,000 | | | | 683,294 | |
5.25% 2/15/24 | | | 670,000 | | | | 706,346 | |
Crown Castle International | | | | | | | | |
3.80% 2/15/28 | | | 2,115,000 | | | | 2,106,250 | |
4.30% 2/15/29 | | | 545,000 | | | | 562,669 | |
5.25% 1/15/23 | | | 1,325,000 | | | | 1,424,105 | |
CubeSmart 3.125% 9/1/26 | | | 670,000 | | | | 637,794 | |
Digital Realty Trust
3.40% 10/1/20 | | | 2,100,000 | | | | 2,115,873 | |
Equinix 5.375% 5/15/27 | | | 350,000 | | | | 367,500 | |
ESH Hospitality 144A
5.25% 5/1/25 # | | | 585,000 | | | | 582,806 | |
Growthpoint Properties International 144A
5.872% 5/2/23 # | | | 610,000 | | | | 625,335 | |
Hospitality Properties Trust 4.50% 3/15/25 | | | 870,000 | | | | 865,357 | |
Host Hotels & Resorts | | | | | | | | |
3.75% 10/15/23 | | | 1,110,000 | | | | 1,115,354 | |
3.875% 4/1/24 | | | 250,000 | | | | 251,139 | |
4.50% 2/1/26 | | | 45,000 | | | | 45,908 | |
Iron Mountain US Holdings 144A
5.375% 6/1/26 # | | | 380,000 | | | | 376,200 | |
Kilroy Realty
3.45% 12/15/24 | | | 720,000 | | | | 714,062 | |
LifeStorage
3.50% 7/1/26 | | | 695,000 | | | | 670,318 | |
MGM Growth Properties Operating Partnership 144A
5.75% 2/1/27 # | | | 145,000 | | | | 150,256 | |
WEA Finance 144A
3.25% 10/5/20 # | | | 1,800,000 | | | | 1,811,653 | |
WP Carey 4.60% 4/1/24 | | | 695,000 | | | | 723,275 | |
| | | | | | | | |
| | | | | | | 19,435,659 | |
| | | | | | | | |
Technology – 1.19% | | | | | |
Analog Devices
2.95% 1/12/21 | | | 575,000 | | | | 576,937 | |
68
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds(continued) | | | | | |
| |
Technology (continued) | | | | | | | | |
Apple | | | | | | | | |
3.047% (LIBOR03M + 0.35%) 5/11/22● | | | 1,040,000 | | | $ | 1,046,992 | |
3.197% (LIBOR03M + 0.50%) 2/9/22● | | | 180,000 | | | | 181,739 | |
Broadcom | | | | | | | | |
2.20% 1/15/21 | | | 1,300,000 | | | | 1,280,290 | |
3.00% 1/15/22 | | | 1,400,000 | | | | 1,395,047 | |
144A 3.125% 10/15/22 # | | | 1,000,000 | | | | 995,430 | |
3.50% 1/15/28 | | | 895,000 | | | | 825,268 | |
144A 4.25% 4/15/26 # | | | 1,005,000 | | | | 997,573 | |
CDK Global | | | | | | | | |
5.00% 10/15/24 | | | 840,000 | | | | 864,528 | |
5.875% 6/15/26 | | | 364,000 | | | | 382,200 | |
CommScope Technologies
144A 5.00% 3/15/27 # | | | 355,000 | | | | 315,659 | |
Dell International | | | | | | | | |
4.42% 6/15/21 | | | 1,600,000 | | | | 1,642,115 | |
144A 4.42% 6/15/21 # | | | 300,000 | | | | 307,944 | |
144A 5.45% 6/15/23 # | | | 600,000 | | | | 639,753 | |
EMC 2.65% 6/1/20 | | | 1,900,000 | | | | 1,886,204 | |
First Data 144A
5.75% 1/15/24 # | | | 610,000 | | | | 629,520 | |
Fiserv 3.80% 10/1/23 | | | 510,000 | | | | 523,292 | |
Infor US 6.50% 5/15/22 | | | 70,000 | | | | 71,225 | |
International Business Machines
1.625% 5/15/20 | | | 440,000 | | | | 434,949 | |
KLA-Tencor | | | | | | | | |
4.10% 3/15/29 | | | 670,000 | | | | 686,286 | |
5.00% 3/15/49 | | | 255,000 | | | | 270,640 | |
Marvell Technology Group
4.875% 6/22/28 | | | 1,340,000 | | | | 1,387,733 | |
Microchip Technology | | | | | | | | |
144A 3.922% 6/1/21 # | | | 380,000 | | | | 383,547 | |
144A 4.333% 6/1/23 # | | | 2,700,000 | | | | 2,761,233 | |
MSCI 144A
5.375% 5/15/27 # | | | 245,000 | | | | 259,700 | |
NXP
| | | | | | | | |
144A 4.625% 6/15/22 # | | | 300,000 | | | | 311,130 | |
144A 4.625% 6/1/23 # | | | 1,000,000 | | | | 1,041,000 | |
144A 4.875% 3/1/24 # | | | 1,700,000 | | | | 1,795,999 | |
Oracle | | | | | | | | |
2.50% 5/15/22 | | | 1,200,000 | | | | 1,194,517 | |
3.314% (LIBOR03M + 0.51%) 10/8/19● | | | 940,000 | | | | 942,475 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Corporate Bonds (continued) | | | | | |
| |
Technology (continued) | | | | | | | | |
Pluralsight 144A
0.375% 3/1/24 # | | | 113,000 | | | $ | 121,163 | |
Symantec
4.20% 9/15/20 | | | 2,000,000 | | | | 2,031,018 | |
| | | | | | | | |
| | | | | | | 28,183,106 | |
| | | | | | | | |
Transportation – 0.72% | |
American Airlines2011-1 Class A Pass Through Trust
5.25% 1/31/21◆ | | | 237,797 | | | | 244,242 | |
American Airlines2016-3 Class AA Pass Through Trust
3.00% 10/15/28◆ | | | 1,198,825 | | | | 1,163,211 | |
Ashtead Capital
144A 5.25% 8/1/26 # | | | 400,000 | | | | 411,000 | |
Avis Budget Car Rental
144A
6.375% 4/1/24 # | | | 69,000 | | | | 70,380 | |
Continental Airlines2009-2 Class A Pass Through Trust
7.25% 11/10/19◆ | | | 529,694 | | | | 541,082 | |
Delta Air Lines
3.625% 3/15/22 | | | 500,000 | | | | 503,774 | |
Delta Air Lines2007-1 Class A Pass Through Trust
6.821% 8/10/22◆ | | | 213,841 | | | | 234,124 | |
Doric Nimrod Air Finance Alpha2012-1 Class A Pass Through Trust
144A 5.125% 11/30/22 #◆ | | | 1,000,209 | | | | 1,015,495 | |
ERAC USA Finance
144A 4.50% 8/16/21 # | | | 200,000 | | | | 206,238 | |
FedEx
4.05% 2/15/48 | | | 1,760,000 | | | | 1,575,583 | |
Kansas City Southern
3.00% 5/15/23 | | | 500,000 | | | | 501,157 | |
Latam Airlines2015-1 Pass Through Trust Class A 4.20%
11/15/27◆ | | | 413,613 | | | | 409,229 | |
Latam Finance
144A 7.00% 3/1/26 # | | | 605,000 | | | | 616,193 | |
Norfolk Southern
3.80% 8/1/28 | | | 1,205,000 | | | | 1,245,959 | |
Penske Truck Leasing | | | | | | | | |
144A 3.30% 4/1/21 # | | | 435,000 | | | | 436,852 | |
144A 3.95% 3/10/25 # | | | 1,000,000 | | | | 1,006,232 | |
144A 4.20% 4/1/27 # | | | 590,000 | | | | 587,869 | |
144A 4.45% 1/29/26 # | | | 2,100,000 | | | | 2,149,025 | |
United Airlines2014-1 Class A Pass Through Trust
4.00% 4/11/26◆ | | | 281,944 | | | | 287,767 | |
United Airlines2014-2 Class A Pass Through Trust
3.75% 9/3/26◆ | | | 520,937 | | | | 525,600 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Corporate Bonds (continued) | |
| |
Transportation (continued) | |
United Airlines2019-1 Class
AA Pass-Through Trust
4.15% 8/25/31◆ | | | 150,000 | | | $ | 155,404 | |
United Parcel Service
5.125% 4/1/19 | | | 2,210,000 | | | | 2,210,000 | |
United Rentals North America
5.50% 5/15/27 | | | 560,000 | | | | 567,000 | |
US Airways2012-2 Class A Pass Through Trust
4.625% 6/3/25◆ | | | 457,351 | | | | 478,162 | |
| | | | | | | | |
| | | | | | | 17,141,578 | |
| | | | | | | | |
Utilities – 3.03% | | | | | | | | |
Aegea Finance 144A
5.75% 10/10/24 # | | | 785,000 | | | | 775,980 | |
AEP Texas 2.40% 10/1/22 | | | 745,000 | | | | 735,155 | |
AES Andres 144A
7.95% 5/11/26 # | | | 840,000 | | | | 895,650 | |
AES Gener
| | | | | | | | |
144A 5.25% 8/15/21 # | | | 20,000 | | | | 20,744 | |
144A 7.125% 3/26/79 #µ | | | 605,000 | | | | 619,369 | |
American Electric Power
2.15% 11/13/20 | | | 300,000 | | | | 297,338 | |
American Transmission
Systems 144A
5.25% 1/15/22 # | | | 1,455,000 | | | | 1,541,228 | |
Atlantic City Electric
4.00% 10/15/28 | | | 590,000 | | | | 624,563 | |
Ausgrid Finance
| | | | | | | | |
144A 3.85% 5/1/23 # | | | 1,550,000 | | | | 1,585,521 | |
144A 4.35% 8/1/28 # | | | 735,000 | | | | 758,923 | |
Avangrid 3.15% 12/1/24 | | | 305,000 | | | | 301,829 | |
Berkshire Hathaway Energy
3.75% 11/15/23 | | | 1,145,000 | | | | 1,191,501 | |
Calpine
| | | | | | | | |
5.75% 1/15/25 | | | 92,000 | | | | 91,770 | |
144A 5.875% 1/15/24 # | | | 145,000 | | | | 148,987 | |
CenterPoint Energy
| | | | | | | | |
3.85% 2/1/24 | | | 1,635,000 | | | | 1,669,146 | |
4.25% 11/1/28 | | | 1,015,000 | | | | 1,053,206 | |
6.125%µy | | | 935,000 | | | | 950,741 | |
Cleveland Electric Illuminating
5.50% 8/15/24 | | | 515,000 | | | | 565,004 | |
ComEd Financing III
6.35% 3/15/33 | | | 680,000 | | | | 695,426 | |
Consolidated Edison of New York
3.002% (LIBOR03M + 0.40%) 6/25/21· | | | 500,000 | | | | 499,429 | |
Consumers Energy
3.80% 11/15/28 | | | 2,410,000 | | | | 2,543,982 | |
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Corporate Bonds (continued) | |
| |
Utilities (continued) | |
Consumers Energy
4.35% 4/15/49 | | | 400,000 | | | $ | 446,149 | |
Dominion Energy
| | | | | | | | |
2.00% 8/15/21 | | | 280,000 | | | | 273,476 | |
4.60% 3/15/49 | | | 495,000 | | | | 516,216 | |
DTE Electric 3.95% 3/1/49 | | | 1,215,000 | | | | 1,253,934 | |
DTE Energy 3.30% 6/15/22 | | | 715,000 | | | | 721,507 | |
Duke Energy
| | | | | | | | |
1.80% 9/1/21 | | | 770,000 | | | | 751,903 | |
144A 3.193% (LIBOR03M + 0.50%) 5/14/21 #· | | | 3,300,000 | | | | 3,299,359 | |
Duke Energy Carolinas
3.95% 11/15/28 | | | 800,000 | | | | 853,410 | |
Duke Energy Ohio
3.65% 2/1/29 | | | 605,000 | | | | 629,253 | |
Emera 6.75% 6/15/76 µ | | | 1,365,000 | | | | 1,459,151 | |
Enel 144A 8.75% 9/24/73 #µ | | | 1,205,000 | | | | 1,326,946 | |
Enel Finance International 144A 2.875% 5/25/22 # | | | 1,100,000 | | | | 1,082,119 | |
Engie Energia Chile 144A 4.50% 1/29/25 # | | | 200,000 | | | | 207,821 | |
Entergy Arkansas
3.75% 2/15/21 | | | 200,000 | | | | 203,146 | |
4.20% 4/1/49 | | | 935,000 | | | | 969,798 | |
Entergy Louisiana
| | | | | | | | |
4.00% 3/15/33 | | | 95,000 | | | | 99,981 | |
4.05% 9/1/23 | | | 240,000 | | | | 250,716 | |
4.95% 1/15/45 | | | 235,000 | | | | 245,515 | |
Evergy 4.85% 6/1/21 | | | 545,000 | | | | 561,800 | |
Exelon
| | | | | | | | |
2.45% 4/15/21 | | | 200,000 | | | | 197,788 | |
3.497% 6/1/22 | | | 1,075,000 | | | | 1,086,767 | |
3.95% 6/15/25 | | | 670,000 | | | | 694,578 | |
FirstEnergy 2.85% 7/15/22 | | | 200,000 | | | | 198,756 | |
Fortis 2.10% 10/4/21 | | | 325,000 | | | | 318,115 | |
Interstate Power & Light
4.10% 9/26/28 | | | 2,140,000 | | | | 2,240,903 | |
Israel Electric 144A
5.00% 11/12/24 # | | | 425,000 | | | | 449,437 | |
ITC Holdings
2.70% 11/15/22 | | | 330,000 | | | | 324,357 | |
Kallpa Generacion 144A
4.125% 8/16/27 # | | | 870,000 | | | | 863,475 | |
Kansas City Power & Light
3.65% 8/15/25 | | | 1,350,000 | | | | 1,393,238 | |
LG&E & KU Energy
4.375% 10/1/21 | | | 1,555,000 | | | | 1,598,193 | |
MidAmerican Energy
4.25% 7/15/49 | | | 2,785,000 | | | | 2,969,767 | |
70
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Corporate Bonds(continued) | | | | | |
| |
Utilities (continued) | | | | | | | | |
Mississippi Power
3.95% 3/30/28 | | | 795,000 | | | $ | 805,866 | |
National Rural Utilities Cooperative Finance | | | | | | | | |
4.75% 4/30/43 µ | | | 1,195,000 | | | | 1,152,906 | |
5.25% 4/20/46 µ | | | 865,000 | | | | 868,822 | |
Nevada Power
2.75% 4/15/20 | | | 970,000 | | | | 971,256 | |
New York State Electric & Gas 144A
3.25% 12/1/26 # | | | 1,015,000 | | | | 1,014,665 | |
Newfoundland & Labrador Hydro 3.60% 12/1/45 | | CAD | 100,000 | | | | 81,063 | |
NextEra Energy Capital Holdings | | | | | | | | |
2.70% 9/15/19 | | | 450,000 | | | | 449,824 | |
3.15% 4/1/24 | | | 850,000 | | | | 855,204 | |
3.20% 2/25/22 | | | 400,000 | | | | 403,826 | |
NV Energy
6.25% 11/15/20 | | | 825,000 | | | | 869,923 | |
Oglethorpe Power 144A 5.05% 10/1/48 # | | | 2,220,000 | | | | 2,445,324 | |
Pedernales Electric Cooperative 144A 6.202% 11/15/32 # | | | 620,000 | | | | 757,228 | |
Pennsylvania Electric
5.20% 4/1/20 | | | 280,000 | | | | 285,683 | |
Perusahaan Listrik Negara | | | | | | | | |
144A 4.125% 5/15/27 # | | | 300,000 | | | | 296,332 | |
144A 5.25% 5/15/47 # | | | 410,000 | | | | 407,861 | |
PSEG Power
3.85% 6/1/23 | | | 430,000 | | | | 440,981 | |
Public Service Co. of Oklahoma
5.15% 12/1/19 | | | 645,000 | | | | 655,725 | |
Puget Energy
6.50% 12/15/20 | | | 3,800,000 | | | | 4,010,802 | |
Sempra Energy
| | | | | | | | |
3.061% (LIBOR03M + 0.45%) 3/15/21● | | | 2,050,000 | | | | 2,031,720 | |
3.287% (LIBOR03M + 0.50%) 1/15/21● | | | 451,000 | | | | 447,369 | |
Southern California Edison | | | | | | | | |
4.20% 3/1/29 | | | 335,000 | | | | 340,557 | |
4.875% 3/1/49 | | | 795,000 | | | | 844,761 | |
Southern Power 144A | | | | | | | | |
3.183% (LIBOR03M +
0.55%) 12/20/20 #● | | | 1,700,000 | | | | 1,693,115 | |
Southwestern Electric Power | | | | | |
4.10% 9/15/28 | | | 2,415,000 | | | | 2,515,560 | |
State Grid Overseas | | | | | | | | |
Investment 2016 144A
2.25% 5/4/20 # | | | 645,000 | | | | 639,847 | |
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Corporate Bonds (continued) | | | | | | | | |
| |
Utilities (continued) | | | | | | | | |
Trans-Allegheny Interstate Line 144A 3.85% 6/1/25 # | | | 525,000 | | | $ | 537,425 | |
Vistra Operations
| | | | | | | | |
144A 5.50% 9/1/26 # | | | 715,000 | | | | 745,387 | |
144A 5.625% 2/15/27 # | | | 145,000 | | | | 151,163 | |
| | | | | | | | |
| | | | | | | 71,773,261 | |
| | | | | | | | |
Total Corporate Bonds
(cost $862,629,087) | | | | | | | 876,303,713 | |
| | | | | | | | |
|
| |
Municipal Bonds – 0.68% | | | | | | | | |
|
| |
American Municipal Power,
Ohio (Combined
Hydroelectric Projects)
| | | | | | | | |
Series B 8.084% 2/15/50 | | | 1,500,000 | | | | 2,493,105 | |
Buckeye, Ohio Tobacco
Settlement Financing
Authority
(Asset-Backed Senior
Turbo) | | | | | | | | |
SeriesA-2 5.875%
6/1/47 | | | 145,000 | | | | 141,767 | |
California State Various
Purposes
(Build America Bonds)
| | | | | | | | |
7.55% 4/1/39 | | | 395,000 | | | | 600,625 | |
(High-Speed Passenger
Train Bonds) | | | | | | | | |
(Series C
3.274% 4/1/47● | | | 1,250,000 | | | | 1,255,300 | |
Chicago, Illinois Transit
Authority
(Pension Funding) | | | | | | | | |
Series A
6.899% 12/1/40 | | | 1,800,000 | | | | 2,366,064 | |
(Retiree Health Care
Funding) | | | | | | | | |
Series B
6.899% 12/1/40 | | | 1,800,000 | | | | 2,366,064 | |
Municipal Electric Authority of Georgia (Build America
Bond Plant Vogtle Units 3 & 4 Project)
| | | | | | | | |
6.655% 4/1/57 | | | 1,797,000 | | | | 2,162,797 | |
New Jersey Transportation
Trust Fund Authority
(Build America Bond)
| | | | | | | | |
Series C 5.754%
12/15/28 | | | 1,590,000 | | | | 1,780,275 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Municipal Bonds(continued) | |
| |
New York City, New York
Transitional Finance
Authority Future Tax
Secured Revenue (Build America Bond)
Subordinate
| | | | | | | | |
SeriesA-1 5.508% 8/1/37 | | | 700,000 | | | $ | 850,745 | |
New York State Urban Development (Build
America Bond)
| | | | | | | | |
Series E 5.77% 3/15/39 | | | 800,000 | | | | 953,712 | |
Oregon State Taxable Pension
| | | | | | | | |
5.892% 6/1/27 | | | 30,000 | | | | 35,603 | |
Pennsylvania Higher
Education Assistance
Agency Revenue
(Guaranteed Student
Loans) | | | | | | | | |
Series2006-2 A3
2.901% (LIBOR03M +
0.13%) 10/25/36● | | | 540,240 | | | | 534,098 | |
South Carolina Public Service Authority
(Santee Cooper) | | | | | | | | |
Series D
4.77% 12/1/45 | | | 145,000 | | | | 161,617 | |
Texas Water Development
Board (State Water Implementation)
| | | | | | | | |
Series A 5.00% 10/15/45 | | | 130,000 | | | | 148,586 | |
Series B 5.00% 10/15/46 | | | 305,000 | | | | 354,325 | |
| | | | | | | | |
Total Municipal Bonds
(cost $15,658,928) | | | | | | | 16,204,683 | |
| | | | | | | | |
|
| |
Non-Agency Asset-Backed Securities – 3.30% | |
| |
ABFC Trust
| | | | | | | | |
Series2006-HE1 A2D
2.706% (LIBOR01M +
0.22%, Floor 0.22%) 1/25/37● | | | 365,002 | | | | 237,934 | |
American Express Credit
Account Master Trust
| | | | | | | | |
Series2017-2 A 2.934% | | | | | | | | |
(LIBOR01M + 0.45%) 9/16/24● | | | 135,000 | | | | 135,589 | |
Series2017-5 A 2.864% | | | | | | | | |
(LIBOR01M + 0.38%) 2/18/25● | | | 205,000 | | | | 205,589 | |
Series2017-8 A 2.604% | | | | | | | | |
(LIBOR01M + 0.12%, Floor 0.12%) 5/16/22● | | | 760,000 | | | | 760,299 | |
Series2018-5 A 2.824% | | | | | | | | |
(LIBOR01M + 0.34%) 12/15/25● | | | 1,030,000 | | | | 1,026,295 | |
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Non-Agency Asset-Backed Securities (continued) | |
| |
American Express Credit
Account Master Trust
| | | | | | | | |
Series2018-7 A 2.844%
(LIBOR01M + 0.36%) 2/17/26 ● | | | 1,000,000 | | | $ | 995,105 | |
Series2018-9 A 2.864% (LIBOR01M + 0.38%)
4/15/26● | | | 1,200,000 | | | | 1,196,424 | |
Argent Securities
Asset-Backed Pass Through
Certificates
| | | | | | | | |
Series2003-W9 M1
3.521% (LIBOR01M +
1.035%, Floor 0.69%) 1/25/34 ● | | | 222,108 | | | | 221,262 | |
Argent Securities Trust
| | | | | | | | |
Series2006-M1 A2C
2.636% (LIBOR01M +
0.15%, Floor 0.15%) 7/25/36 ● | | | 1,271,298 | | | | 462,045 | |
Series2006-W4 A2C
2.646% (LIBOR01M +
0.16%, Floor 0.16%) 5/25/36 ● | | | 665,560 | | | | 241,139 | |
Barclays Dryrock Issuance Trust | | | | | | | | |
Series2017-1 A 2.814% (LIBOR01M + 0.33%, Floor 0.33%) 3/15/23● | | | 2,220,000 | | | | 2,223,177 | |
Bear Stearns Asset-Backed
Securities I Trust
| | | | | | | | |
Series2005-FR1 M2
3.491% (LIBOR01M + 1.005%, Floor 0.67%) 6/25/35 ● | | | 1,944,989 | | | | 1,935,737 | |
Series2007-HE2 1A2 2.656%
(LIBOR01M + 0.17%, Floor 0.17%) 3/25/37 ● | | | 212,198 | | | | 296,223 | |
Bear Stearns Asset-Backed
Securities Trust
| | | | | | | | |
Series2007-SD1 22A1
3.86% 10/25/36● | | | 176,784 | | | | 123,383 | |
Bear Stearns Second Lien Trust
| | | | | | | | |
Series 2007-SV1A M2
144A 3.836% (LIBOR01M +
1.35%, Cap 11.00%, Floor 0.90%) 1/25/36 #● | | | 800,000 | | | | 782,070 | |
72
| | | | | | | | |
| | | Principal | | | Value | |
| | | amount° | | | (US $) | |
| |
Non-Agency Asset-Backed Securities(continued) | |
| |
BMW Floorplan Master Owner Trust | | | | | | | | |
Series2018-1 A2 144A 2.804% (LIBOR01M + 0.32%) 5/15/23 #● | | | 1,500,000 | | | $ | 1,499,651 | |
Business Jet Securities | | | | | | | | |
Series2018-2 A 144A 4.447%
6/15/33 # | | | 867,294 | | | | 878,020 | |
CARDS II Trust | | | | | | | | |
Series2017-1A A 144A 2.854% (LIBOR01M + 0.37%) 4/18/22 #● | | | 1,045,000 | | | | 1,045,000 | |
Centex Home Equity Loan Trust | | | | | | | | |
Series2002-A AF6 5.54% 1/25/32 | | | 731 | | | | 736 | |
Chase Issuance Trust | | | | | | | | |
Series2016-A3 3.034% (LIBOR01M + 0.55%) 6/15/23● | | | 500,000 | | | | 503,565 | |
Series2017-A1 A 2.784% (LIBOR01M + 0.30%) 1/15/22● | | | 1,370,000 | | | | 1,371,861 | |
Series2018-A1 A1 2.684% (LIBOR01M + 0.20%) 4/17/23● | | | 185,000 | | | | 184,889 | |
Citibank Credit Card Issuance Trust | | | | | | | | |
Series2016-A3 A3 2.971% (LIBOR01M + 0.49%) 12/7/23● | | | 500,000 | | | | 503,416 | |
Series2017-A5 A5 3.111% (LIBOR01M + 0.62%, Floor 0.62%) 4/22/26● | | | 1,045,000 | | | | 1,049,905 | |
Series2017-A7 A7 2.862% (LIBOR01M + 0.37%) 8/8/24● | | | 500,000 | | | | 500,499 | |
Series2018-A2 A2 2.818% (LIBOR01M + 0.33%) 1/20/25● | | | 515,000 | | | | 514,280 | |
Citicorp Residential Mortgage Trust | | | | | | | | |
Series2006-3 A5 5.236% 11/25/36● | | | 900,000 | | | | 919,087 | |
CNH Equipment Trust | | | | | | | | |
Series2019-A A2 2.96% 5/16/22 | | | 1,600,000 | | | | 1,602,817 | |
Countrywide Asset-Backed Certificates | | | | | | | | |
Series2004-3 2A 2.886% (LIBOR01M + 0.40%, Floor 0.20%) 8/25/34● | | | 54,618 | | | | 53,947 | |
| | | | | | | | |
| | | Principal | | | Value | |
| | | amount° | | | (US $) | |
| |
Non-Agency Asset-Backed Securities(continued) | |
| |
Countrywide Asset-Backed Certificates | | | | | | | | |
Series2006-1 AF6 4.756% 7/25/36● | | | 227,599 | | | $ | 230,110 | |
Series2006-26 2A4 2.706% (LIBOR01M + 0.22%, Floor 0.22%) 6/25/37● | | | 2,000,000 | | | | 1,927,031 | |
Series2007-6 2A4 2.796% (LIBOR01M + 0.31%, Floor 0.31%) 9/25/37● | | | 962,792 | | | | 670,605 | |
CSMC | | | | | | | | |
Series2017-1A-A 4.50% 3/1/21 | | | 125,901 | | | | 126,339 | |
CWABS Asset-Backed Certificates Trust | | | | | | | | |
Series 2005-3 MV7 4.436% (LIBOR01M + 1.95%, Floor 1.30%) 8/25/35● | | | 4,200,000 | | | | 4,156,149 | |
Series2005-7 MV3 3.066% (LIBOR01M + 0.58%, Floor 0.58%) 11/25/35● | | | 145,114 | | | | 144,999 | |
Series2006-11 1AF6 6.15% 9/25/46● | | | 172,767 | | | | 172,839 | |
Series2006-17 2A2 2.636% (LIBOR01M + 0.15%, Floor 0.15%) 3/25/47● | | | 1,700,058 | | | | 1,661,053 | |
Discover Card Execution Note Trust | | | | | | | | |
Series2017-A1 A1 2.974% (LIBOR01M + 0.49%) 7/15/24● | | | 1,205,000 | | | | 1,212,229 | |
Series2017-A5 A5 3.084% (LIBOR01M + 0.60%) 12/15/26● | | | 500,000 | | | | 500,700 | |
Series2017-A7 A7 2.844% (LIBOR01M + 0.36%) 4/15/25● | | | 2,625,000 | | | | 2,622,383 | |
Series2018-A2 A2 2.814% (LIBOR01M + 0.33%) 8/15/25● | | | 500,000 | | | | 498,701 | |
Series2018-A3 A3 2.714% (LIBOR01M + 0.23%, Floor 0.23%) 12/15/23● | | | 560,000 | | | | 559,665 | |
Series2019-A1 A1 3.04% 7/15/24 | | | 400,000 | | | | 405,454 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal | | | Value | |
| | | amount° | | | (US $) | |
| |
| Non-Agency Asset-Backed Securities(continued) | |
| |
EquiFirst Mortgage Loan Trust | | | | | | | | |
Series2004-2 M7 5.486% (LIBOR01M + 3.00%, Floor 2.00%) 10/25/34● | | | 662,361 | | | $ | 667,226 | |
First Franklin Mortgage Loan Trust | | | | | | | | |
Series2006-FF5 2A3 2.646% (LIBOR01M + 0.16%, Floor 0.16%) 4/25/36● | | | 1,047,782 | | | | 1,014,327 | |
Ford Credit Auto Lease Trust | | | | | | | | |
Series2017-B A2B 2.644% (LIBOR01M + 0.16%) 6/15/20● | | | 241,724 | | | | 241,699 | |
Ford Credit Auto Owner Trust | | | | | | | | |
Series2018-1 A 144A 3.19% 7/15/31 # | | | 840,000 | | | | 840,883 | |
GSAMP Trust | | | | | | | | |
Series2006-FM3 A2D 2.716% (LIBOR01M + 0.23%, Floor 0.23%) 11/25/36● | | | 1,023,986 | | | | 616,865 | |
Series 2007-SEA1 A 144A 2.786% (LIBOR01M + 0.30%, Floor 0.30%) 12/25/36 #● | | | 896,368 | | | | 862,554 | |
Hardee’s Funding | | | | | | | | |
Series2018-1A A2I 144A 4.25% 6/20/48 # | | | 646,750 | | | | 654,239 | |
Series2018-1A A2II 144A 4.959% 6/20/48 # | | | 497,500 | | | | 522,609 | |
Hertz Vehicle Financing | | | | | | | | |
Series2018-2A A 144A 3.65% 6/27/22 # | | | 100,000 | | | | 100,927 | |
HOA Funding | | | | | | | | |
Series2014-1A A2 144A 4.846% 8/20/44 # | | | 1,278,550 | | | | 1,272,055 | |
Home Equity Mortgage Loan Asset-Backed Trust | | | | | | | | |
Series2007-A 2A3 2.726% (LIBOR01M + 0.24%, Floor 0.24%) 4/25/37● | | | 1,485,099 | | | | 1,096,912 | |
HSI Asset Securitization Trust | | | | | | | | |
Series2006-HE1 2A1 2.536% (LIBOR01M + 0.05%, Floor 0.05%) 10/25/36● | | | 30,657 | | | | 16,244 | |
| | | | | | | | |
| | | Principal | | | Value | |
| | | amount° | | | (US $) | |
| |
| Non-Agency Asset-Backed Securities(continued) | |
| |
JPMorgan Mortgage Acquisition Trust | | | | | | | | |
Series2006-CW2 AV5 2.726% (LIBOR01M + 0.24%, Floor 0.24%) 8/25/36● | | | 500,000 | | | $ | 483,964 | |
Long Beach Mortgage Loan Trust | | | | | | | | |
Series2006-1 2A4 2.79% (LIBOR01M + 0.30%, Floor 0.30%) 2/25/36● | | | 3,232,839 | | | | 2,665,850 | |
Series2006-7 1A 2.641% (LIBOR01M + 0.155%, Floor 0.16%) 8/25/36● | | | 3,067,475 | | | | 1,871,260 | |
Mercedes-Benz Master Owner Trust | | | | | | | | |
Series2018-BA A 144A 2.824% (LIBOR01M + 0.34%) 5/15/23 #● | | | 600,000 | | | | 600,126 | |
Merrill Lynch Mortgage Investors Trust | | | | | | | | |
Series2006-FF1 M2 2.776% (LIBOR01M + 0.29%, Floor 0.29%) 8/25/36● | | | 35,646 | | | | 35,646 | |
Morgan Stanley ABS Capital I Trust | | | | | | | | |
Series2007-HE1 A2C 2.636% (LIBOR01M + 0.15%, Floor 0.15%) 11/25/36● | | | 5,155,147 | | | | 3,488,134 | |
Series2007-HE5 A2D 2.826% (LIBOR01M + 0.34%, Floor 0.34%) 3/25/37● | | | 3,500,130 | | | | 1,831,890 | |
Navistar Financial Dealer Note Master Owner Trust II | | | | | | | | |
Series2018-1 A 144A 3.116% (LIBOR01M + 0.63%, Floor 0.63%) 9/25/23 #● | | | 450,000 | | | | 450,670 | |
New Century Home Equity Loan Trust | | | | | | | | |
Series2005-1 M2 3.206% (LIBOR01M + 0.72%, Cap 12.50%, Floor 0.48%) 3/25/35● | | | 233,599 | | | | 227,089 | |
New Residential Mortgage Loan Trust | | | | | | | | |
Series 2018-RPL1 A1 144A 3.50% 12/25/57 #● | | | 382,057 | | | | 384,118 | |
74
| | | | | | | | |
| | | Principal | | | Value | |
| | | amount° | | | (US $) | |
| |
| Non-Agency Asset-Backed Securities(continued) | |
| |
Option One Mortgage Loan Trust | | | | | | | | |
Series2005-1 M1 3.266% (LIBOR01M + 0.78%, Floor 0.52%) 2/25/35● | | | 2,155,252 | | | $ | 2,089,423 | |
Series2007-4 2A4 2.796% (LIBOR01M + 0.31%, Floor 0.31%) 4/25/37● | | | 6,562,623 | | | | 4,316,384 | |
Penarth Master Issuer | | | | | | | | |
Series2018-2A A1 144A 2.932% (LIBOR01M + 0.45%) 9/18/22 #● | | | 1,625,000 | | | | 1,617,223 | |
PFS Financing | | | | | | | | |
Series2018-E A 144A 2.934% (LIBOR01M + 0.45%) 10/15/22 #● | | | 2,315,000 | | | | 2,315,236 | |
RAAC Trust | | | | | | | | |
Series2005-SP2 2A 2.786% (LIBOR01M + 0.30%, Cap 14.00%, Floor 0.30%) 6/25/44● | | | 422,562 | | | | 376,419 | |
RAMP Trust | | | | | | | | |
Series2007-RZ1 A2 2.646% (LIBOR01M + 0.16%, Cap 14.00%, Floor 0.16%) 2/25/37● | | | 264,870 | | | | 263,255 | |
Sofi Consumer Loan Program | | | | | | | | |
Series2017-3 A 144A 2.77% 5/25/26 # | | | 882,211 | | | | 879,331 | |
Series2018-1 A1 144A 2.55% 2/25/27 # | | | 426,063 | | | | 424,938 | |
Sofi Professional Loan Program | | | | | | | | |
Series2016-F A2 144A 3.02% 2/25/40 # | | | 384,023 | | | | 384,330 | |
Soundview Home Loan Trust | | | | | | | | |
Series 2006-OPT1 2A4 2.756% (LIBOR01M + 0.27%, Floor 0.27%) 3/25/36 ● | | | 300,000 | | | | 292,770 | |
Series2006-WF2 A1 2.616% (LIBOR01M + 0.13%, Floor 0.13%) 12/25/36 ● | | | 120,861 | | | | 120,699 | |
SpringCastle America Funding | | | | | | | | |
Series2016-AA A 144A 3.05% 4/25/29 # | | | 1,946,060 | | | | 1,943,603 | |
| | | | | | | | |
| | | Principal | | | Value | |
| | | amount° | | | (US $) | |
| |
| Non-Agency Asset-Backed Securities(continued) | |
| |
Structured Asset Investment Loan Trust | | | | | | | | |
Series2003-BC2 M1 3.866% (LIBOR01M + 1.38%, Floor 0.92%) 4/25/33● | | | 15,778 | | | $ | 15,670 | |
Structured Asset Securities Mortgage Loan Trust | | | | | | | | |
Series2006-BC1 A6 2.756% (LIBOR01M + 0.27%, Floor 0.27%) 3/25/36● | | | 1,755,667 | | | | 1,582,285 | |
Tesla Auto Lease Trust | | | | | | | | |
Series2018-B A 144A 3.71% 8/20/21 # | | | 950,793 | | | | 961,645 | |
Towd Point Mortgage Trust | | | | | | | | |
Series2017-1 A1 144A 2.75% 10/25/56 #● | | | 1,171,653 | | | | 1,158,748 | |
Series2017-2 A1 144A 2.75% 4/25/57 #● | | | 144,956 | | | | 143,481 | |
Series2017-4 M1 144A 3.25% 6/25/57 #● | | | 615,000 | | | | 582,958 | |
Series2018-1 A1 144A 3.00% 1/25/58 #● | | | 252,336 | | | | 249,740 | |
Trafigura Securitisation Finance | | | | | | | | |
Series2018-1A A1 144A 3.214% (LIBOR01M + 0.73%) 3/15/22 #● | | | 650,000 | | | | 650,154 | |
Volvo Financial Equipment Master Owner Trust | | | | | | | | |
Series2017-A A 144A 2.984% (LIBOR01M + 0.50%) 11/15/22 #● | | | 1,075,000 | | | | 1,077,569 | |
Wendys Funding | | | | | | | | |
Series2018-1A A2I 144A 3.573% 3/15/48 # | | | 474,000 | | | | 467,298 | |
| | | | | | | | |
TotalNon-Agency Asset-Backed Securities
(cost $76,356,353) | | | | 78,216,647 | |
| | | | | | | | |
|
| |
Non-Agency Collateralized Mortgage Obligations – 1.74% | |
| |
Alternative Loan Trust Resecuritization | | | | | | | | |
Series2008-2R 3A1 6.00% 8/25/37● | | | 1,198,131 | | | | 909,845 | |
ARM Mortgage Trust | | | | | | | | |
Series2004-5 3A1 4.542% 4/25/35● | | | 322,884 | | | | 325,365 | |
Series2005-10 3A31 3.907% 1/25/36● | | | 182,899 | | | | 172,330 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
Non-Agency Collateralized Mortgage Obligations(continued) | |
| |
ARM Mortgage Trust | |
Series2006-2 1A4 4.581% 5/25/36● | | | 707,653 | | | $ | 692,786 | |
Banc of America Alternative Loan Trust | | | | | | | | |
Series2005-6 7A1 5.50% 7/25/20 | | | 15,257 | | | | 13,859 | |
Banc of America Funding Trust | | | | | |
Series2005-E 7A1 2.555% (COF 11 + 1.43%, Floor 1.43%) 6/20/35● | | | 137,246 | | | | 117,092 | |
Series2006-I 1A1 4.468% 12/20/36● | | | 224,666 | | | | 230,638 | |
Banc of America Mortgage Trust | | | | | |
Series2003-D 2A1 4.476% 5/25/33● | | | 198,570 | | | | 202,399 | |
Bear Stearns ARM Trust | | | | | | | | |
Series2003-5 2A1 4.354% 8/25/33● | | | 33,127 | | | | 33,286 | |
Chase Mortgage Finance Trust | | | | | | | | |
Series2005-A1 3A1 4.186% 12/25/35● | | | 93,536 | | | | 89,701 | |
CHL Mortgage Pass Through Trust | | | | | |
Series2007-4 1A1 6.00% 5/25/37◆ | | | 1,069,978 | | | | 816,935 | |
Civic Mortgage | | | | | | | | |
Series2018-1 A1 144A 3.892% 6/25/22 #f | | | 557,987 | | | | 556,843 | |
COLT Mortgage Loan Trust | | | | | |
Series2017-2 A1A 144A 2.415% 10/25/47 #● | | | 1,366,748 | | | | 1,362,437 | |
Connecticut Avenue Securities Trust | | | | | |
Series2018-R07 1M2 144A 4.886% (LIBOR01M + 2.40%) 4/25/31 #● | | | 780,000 | | | | 787,299 | |
Series2019-R01 2M2 144A 4.936% (LIBOR01M + 2.45%) 7/25/31 #● | | | 500,000 | | | | 500,625 | |
Series2019-R02 1M2 144A 4.786% (LIBOR01M + 2.30%, Floor 2.30%)
8/25/31 #● | | | 1,500,000 | | | | 1,509,806 | |
CSMC Mortgage-Backed Trust | | | | | |
Series2005-1R 2A5 144A 5.75% 12/26/35 # | | | 1,197,209 | | | | 1,155,082 | |
Series2007-1 5A14 6.00% 2/25/37 | | | 235,907 | | | | 204,315 | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
Non-Agency Collateralized Mortgage Obligations(continued) | |
| |
CSMC Mortgage-Backed Trust | |
Series2007-3 4A6 2.736% (LIBOR01M + 0.25%, Cap 7.00%, Floor 0.25%)
4/25/37● | | | 212,234 | | | $ | 180,333 | |
Series2007-3 4A12 4.265% (6.75% minus LIBOR01M, Cap 6.75%) 4/25/37S● | | | 212,351 | | | | 26,665 | |
Series2007-3 4A15 5.50% 4/25/37 | | | 94,239 | | | | 92,851 | |
Flagstar Mortgage Trust | | | | | | | | |
Series2018-1 A5 144A 3.50% 3/25/48 #● | | | 558,968 | | | | 558,780 | |
Series2018-5 A7 144A 4.00% 9/25/48 #● | | | 469,629 | | | | 474,980 | |
Galton Funding Mortgage Trust | | | | | | | | |
Series2018-1 A43 144A 3.50% 11/25/57 #● | | | 373,146 | | | | 373,739 | |
GMACM Mortgage Loan Trust | | | | | |
Series2006-J1 A1 5.75% 4/25/36 | | | 39,815 | | | | 39,393 | |
GSR Mortgage Loan Trust | | | | | | | | |
Series2007-AR1 2A1 4.153% 3/25/47● | | | 715,115 | | | | 638,086 | |
Holmes Master Issuer | | | | | | | | |
Series2018-2A A2 144A 3.207% (LIBOR03M + 0.42%) 10/15/54 #● | | | 1,745,000 | | | | 1,743,381 | |
JPMorgan Mortgage Trust | | | | | | | | |
Series2006-A6 2A4L 4.374% 10/25/36● | | | 428,543 | | | | 394,252 | |
Series2006-A7 2A2 4.211% 1/25/37● | | | 84,146 | | | | 80,113 | |
Series2007-A1 6A1 4.43% 7/25/35● | | | 132,647 | | | | 133,574 | |
Series2014-2 B1 144A 3.417% 6/25/29 #● | | | 62,827 | | | | 63,083 | |
Series2014-2 B2 144A 3.417% 6/25/29 #● | | | 62,827 | | | | 62,710 | |
Series2015-4 B1 144A 3.624% 6/25/45 #● | | | 780,116 | | | | 786,324 | |
Series2015-4 B2 144A 3.624% 6/25/45 #● | | | 333,422 | | | | 332,043 | |
Series2015-5 B2 144A 3.27% 5/25/45 #● | | | 615,127 | | | | 609,305 | |
Series2015-6 B1 144A 3.612% 10/25/45 #● | | | 334,911 | | | | 337,771 | |
Series2015-6 B2 144A 3.612% 10/25/45 #● | | | 325,860 | | | | 326,402 | |
76
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Non-Agency Collateralized Mortgage Obligations(continued) | |
| |
JPMorgan Mortgage Trust | |
Series2016-4 B1 144A 3.898% 10/25/46 #● | | | 234,685 | | | $ | 239,234 | |
Series2016-4 B2 144A 3.898% 10/25/46 #● | | | 398,965 | | | | 404,471 | |
Series2017-1 B2 144A 3.549% 1/25/47 #● | | | 701,485 | | | | 697,247 | |
Series2017-2 A3 144A 3.50% 5/25/47 #● | | | 307,893 | | | | 307,008 | |
Series2018-3 A5 144A 3.50% 9/25/48 #● | | | 1,312,879 | | | | 1,313,751 | |
Series2018-4 A15 144A 3.50% 10/25/48 #● | | | 677,897 | | | | 679,145 | |
Series2018-6 1A4 144A 3.50% 12/25/48 #● | | | 437,534 | | | | 438,822 | |
Series 2018-7FRB A2 144A 3.24% (LIBOR01M + 0.75%) 4/25/46 #● | | | 485,672 | | | | 484,863 | |
Series2019-2 A4 144A 4.00% 8/25/49 #=● | | | 2,000,000 | | | | 2,027,400 | |
Series 2019-LTV1 A3 144A 4.00% 6/25/49 #● | | | 1,030,000 | | | | 1,041,427 | |
Lanark Master Issuer | | | | | | | | |
Series2019-1A 1A1 144A 3.467% (LIBOR03M + 0.77%) 12/22/69 #● | | | 800,000 | | | | 802,046 | |
Lehman Mortgage Trust | | | | | | | | |
Series2007-10 2A2 6.50% 1/25/38 | | | 1,582,939 | | | | 1,031,386 | |
Ludgate Funding | | | | | | | | |
Series2006-1X A2A 1.042% (BP0003M + 0.19%) 12/1/60● | | GBP | 1,492,138 | | | | 1,841,266 | |
Series2008-W1X A1 1.448% (BP0003M + 0.60%) 1/1/61● | | GBP | 646,444 | | | | 815,928 | |
Mansard Mortgages | | | | | | | | |
Series2007-1X A2 1.108% (BP0003M + 0.18%) 4/15/47● | | GBP | 715,353 | | | | 883,382 | |
MASTR Alternative Loan Trust | | | | | | | | |
Series2004-3 8A1 7.00% 4/25/34 | | | 1,853 | | | | 2,010 | |
Series2004-5 6A1 7.00% 6/25/34 | | | 30,988 | | | | 32,332 | |
MASTR ARM Trust | | | | | | | | |
Series2004-4 4A1 4.191% 5/25/34● | | | 64,342 | | | | 63,914 | |
Merrill Lynch Mortgage Investors Trust | | | | | | | | |
Series2004-A1 2A2 4.538% 2/25/34● | | | 4,997 | | | | 5,007 | |
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Non-Agency Collateralized Mortgage Obligations(continued) | |
| |
Opteum Mortgage Acceptance Trust | | | | | |
Series2006-1 2A1 5.75% 4/25/36● | | | 184,049 | | | $ | 184,853 | |
RALI Series Trust | | | | | | | | |
Series2007-QA5 2A1 5.99%
9/25/37● | | | 3,814,199 | | | | 3,202,408 | |
Reperforming Loan REMIC Trust | | | | | |
Series2006-R1 AF1 144A 2.826% (LIBOR01M + 0.34%, Cap 9.50%, Floor 0.34%) 1/25/36 #● | | | 1,109,094 | | | | 1,083,512 | |
RFMSI Trust | | | | | | | | |
Series2004-S9 2A1 4.75% 12/25/19 | | | 6,878 | | | | 6,846 | |
Sequoia Mortgage Trust | | | | | | | | |
Series2004-5 A3 3.436% (LIBOR06M + 0.56%, Cap 11.50%, Floor 0.28%)
6/20/34● | | | 171,151 | | | | 164,930 | |
Series2007-1 4A1 3.805% 9/20/46● | | | 511,465 | | | | 414,803 | |
Series2015-1 B2 144A 3.876% 1/25/45 #● | | | 355,028 | | | | 359,534 | |
Series2017-4 A1 144A 3.50% 7/25/47 #● | | | 326,268 | | | | 326,044 | |
Series2018-5 A4 144A 3.50% 5/25/48 #● | | | 578,452 | | | | 580,481 | |
Series2018-8 A4 144A 4.00% 11/25/48 #● | | | 1,018,035 | | | | 1,033,377 | |
Series2019-CH1 A1 144A 4.00% 3/25/49 #● | | | 1,023,171 | | | | 1,046,999 | |
Structured ARM Loan Trust | | | | | |
Series2006-1 7A4 4.201% 2/25/36● | | | 377,101 | | | | 355,219 | |
Structured Asset Mortgage Investments II Trust | | | | | | | | |
Series2005-AR5 A2 2.732% (LIBOR01M + 0.25%, Cap 11.00%, Floor 0.25%)
7/19/35● | | | 328,545 | | | | 325,653 | |
WaMu Mortgage Pass Through Certificates Trust | | | | | | | | |
Series 2005-AR16 1A3 4.256% 12/25/35◆● | | | 384,860 | | | | 384,320 | |
Series2007-HY1 3A3 3.874% 2/25/37◆● | | | 231,269 | | | | 220,791 | |
Series2007-HY7 4A1 3.943% 7/25/37◆● | | | 461,476 | | | | 424,696 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Non-Agency Collateralized Mortgage Obligations(continued) | |
| |
Washington Mutual Mortgage Pass Through Certificates Trust | | | | | | | | |
Series2005-1 5A2
6.00% 3/25/35◆ | | | 7,124 | | | $ | 881 | |
Wells Fargo Mortgage-Backed Securities Trust | | | | | | | | |
Series 2005-AR16 2A1
5.017% 2/25/34· | | | 81,567 | | | | 83,733 | |
Series2006-2 3A1 5.75% 3/25/36 | | | 39,506 | | | | 38,719 | |
Series2006-3 A11 5.50% 3/25/36 | | | 68,549 | | | | 68,945 | |
Series2006-6 1A3 5.75% 5/25/36 | | | 29,577 | | | | 28,690 | |
Series2006-AR5 2A1 5.081% 4/25/36· | | | 30,330 | | | | 30,150 | |
Series 2006-AR11 A6 4.53% 8/25/36· | | | 346,227 | | | | 334,525 | |
Series 2006-AR17 A1 4.75% 10/25/36· | | | 188,739 | | | | 188,246 | |
Series2007-10 1A36 6.00% 7/25/37 | | | 171,971 | | | | 169,994 | |
| | | | | | | | |
TotalNon-Agency
Collateralized Mortgage Obligations
(cost $41,965,412) | | | | | | | 41,103,416 | |
| | | | | | | | |
|
| |
Non-Agency Commercial Mortgage-Backed
Securities – 3.51% | |
| |
BANK | | | | | | | | |
Series 2017-BNK5 A5 3.39% 6/15/60 | | | 1,430,000 | | | | 1,448,849 | |
Series 2017-BNK5 B 3.896% 6/15/60· | | | 605,000 | | | | 611,956 | |
Series 2017-BNK7 A5 3.435% 9/15/60 | | | 715,000 | | | | 730,378 | |
Series 2017-BNK8 A4 3.488% 11/15/50 | | | 515,000 | | | | 526,211 | |
Series 2018-BN14 A4 4.231% 9/15/60 | | | 800,000 | | | | 862,463 | |
BBCMS Mortgage Trust | | | | | | | | |
Series2018-C2 A5
4.314% 12/15/51 | | | 1,080,000 | | | | 1,171,042 | |
BBCMS Trust | | | | | | | | |
Series2015-STP A 144A
3.323% 9/10/28 # | | | 3,357,252 | | | | 3,373,325 | |
BENCHMARK Mortgage Trust | | | | | | | | |
Series2018-B1 A5
3.666% 1/15/51· | | | 2,310,000 | | | | 2,392,953 | |
Series2018-B6 A4
4.261% 10/10/51 | | | 1,450,000 | | | | 1,568,807 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (US $) | |
| |
Non-Agency Commercial Mortgage-Backed Securities(continued) | |
| |
BENCHMARK Mortgage Trust | | | | | | | | |
Series2019-B9 A5
4.016% 3/15/52 | | | 695,000 | | | $ | 738,085 | |
BX Trust | | | | | | | | |
Series 2017-APPL A 144A
3.364% (LIBOR01M + 0.88%, Floor 0.88%) 7/15/34 #· | | | 509,424 | | | | 508,301 | |
Caesars Palace Las Vegas Trust | | | | | | | | |
Series 2017-VICI A 144A
3.531% 10/15/34 # | | | 650,000 | | | | 663,360 | |
CD Mortgage Trust | | | | | | | | |
Series2017-CD6 B
3.911% 11/13/50· | | | 440,000 | | | | 447,783 | |
CFCRE Commercial Mortgage Trust | | | | | | | | |
Series2016-C7 A3
3.839% 12/10/54 | | | 3,100,000 | | | | 3,228,145 | |
Citigroup Commercial Mortgage Trust | | | | | | | | |
Series 2014-GC25 A4 3.635% 10/10/47 | | | 785,000 | | | | 810,597 | |
Series 2015-GC27 A5 3.137% 2/10/48 | | | 1,400,000 | | | | 1,407,405 | |
Series2016-P3 A4 3.329% 4/15/49 | | | 1,305,000 | | | | 1,322,976 | |
Series2017-C4 A4 3.471% 10/12/50 | | | 635,000 | | | | 648,656 | |
Series2018-C5 A4 4.228% 6/10/51 | | | 3,200,000 | | | | 3,439,283 | |
CLNS Trust | | | | | | | | |
Series 2017-IKPR A 144A
3.293% (LIBOR01M + 0.80%, Floor 0.80%) 6/11/32 #· | | | 1,000,000 | | | | 997,480 | |
COMM Mortgage Trust | | | | | | | | |
Series2013-WWP A2 144A 3.424% 3/10/31 # | | | 1,100,000 | | | | 1,129,097 | |
Series 2014-CR20 AM 3.938% 11/10/47 | | | 2,225,000 | | | | 2,288,327 | |
Series2015-3BP A 144A 3.178% 2/10/35 # | | | 605,000 | | | | 611,489 | |
Series 2015-CR23 A4 3.497% 5/10/48 | | | 780,000 | | | | 799,920 | |
Commercial Mortgage Pass Through Certificates | | | | | | | | |
Series 2016-CR28 A4
3.762% 2/10/49◆ | | | 2,330,000 | | | | 2,418,994 | |
78
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Non-Agency Commercial Mortgage-Backed Securities(continued) | |
| |
DBJPM Mortgage Trust | |
Series2016-C1 A4 3.276% 5/10/49 | | | 900,000 | | | $ | 909,890 | |
Series2016-C3 A5 2.89% 8/10/49 | | | 945,000 | | | | 931,067 | |
DBUBS Mortgage Trust
Series 2011-LC1A C 144A
5.699% 11/10/46 #● | | | 600,000 | | | | 625,312 | |
GRACE Mortgage Trust
Series 2014-GRCE B
144A 3.52% 6/10/28 # | | | 3,705,000 | | | | 3,732,789 | |
GS Mortgage Securities II
Series 2018-GS10 C
4.413% 7/10/51● | | | 465,000 | | | | 480,341 | |
GS Mortgage Securities Trust | |
Series2010-C1 C 144A
5.635% 8/10/43 #● | | | 375,000 | | | | 383,373 | |
Series 2015-GC32 A4
3.764% 7/10/48 | | | 1,000,000 | | | | 1,041,319 | |
Series 2016-RENT A 144A
3.203% 2/10/29 # | | | 2,300,000 | | | | 2,309,993 | |
Series2017-GS5 A4 3.674% 3/10/50 | | | 1,280,000 | | | | 1,326,115 | |
Series2017-GS6 A3
3.433% 5/10/50 | | | 1,935,000 | | | | 1,961,923 | |
Series2017-GS6 XA 1.047% 5/10/50● | | | 21,903,804 | | | | 1,547,272 | |
Series2018-GS9 A4 3.992% 3/10/51● | | | 570,000 | | | | 602,896 | |
Series 2019-GC38 A4 3.968% 2/10/52 | | | 870,000 | | | | 921,008 | |
JPMBB Commercial Mortgage
Securities Trust | |
Series2015-C31 A3 3.801% 8/15/48 | | | 8,177,272 | | | | 8,512,363 | |
Series2015-C33 A4
3.77% 12/15/48 | | | 570,000 | | | | 592,670 | |
JPMDB Commercial Mortgage
Securities Trust | |
Series2016-C2 A4 3.144% 6/15/49 | | | 1,640,000 | | | | 1,642,864 | |
Series2016-C4 A3
3.141% 12/15/49 | | | 1,065,000 | | | | 1,066,524 | |
Series2017-C7 A5 3.409% 10/15/50 | | | 1,395,000 | | | | 1,418,266 | |
JPMorgan Chase Commercial
Mortgage Securities Trust | |
Series 2005-CB11 E 5.568% 8/12/37● | | | 230,000 | | | | 234,295 | |
Series 2013-LC11 B 3.499% 4/15/46 | | | 355,000 | | | | 354,635 | |
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Non-Agency Commercial Mortgage-Backed Securities(continued) | |
| |
JPMorgan Chase Commercial
Mortgage Securities Trust | |
Series 2016-JP2 AS 3.056% 8/15/49 | | | 1,250,000 | | | $ | 1,222,169 | |
Series 2016-WIKI A 144A 2.798% 10/5/31 # | | | 705,000 | | | | 701,819 | |
Series 2016-WIKI B 144A 3.201% 10/5/31 # | | | 690,000 | | | | 688,653 | |
LB-UBS Commercial Mortgage Trust
Series2006-C6 AJ
5.452% 9/15/39● | | | 455,185 | | | | 314,225 | |
Morgan Stanley Bank of
America Merrill Lynch Trust | |
Series2015-C26 A5 3.531% 10/15/48 | | | 960,000 | | | | 987,012 | |
Series2015-C27 ASB 3.557% 12/15/47 | | | 2,200,000 | | | | 2,262,302 | |
Series2016-C29 A4 3.325% 5/15/49 | | | 795,000 | | | | 806,254 | |
Morgan Stanley Capital I Trust | |
Series2014-CPT AM 144A 3.402% 7/13/29 #● | | | 2,200,000 | | | | 2,218,557 | |
Series 2016-BNK2 A4 3.049% 11/15/49 | | | 2,066,000 | | | | 2,053,378 | |
Series2018-L1 A4 4.407% 10/15/51 | | | 1,560,000 | | | | 1,701,706 | |
UBS Commercial Mortgage Trust
Series2018-C9 A4
4.117% 3/15/51● | | | 970,000 | | | | 1,032,162 | |
UBS-Barclays Commercial
Mortgage Trust
Series2013-C5 B 144A
3.649% 3/10/46 #● | | | 480,000 | | | | 485,699 | |
Wells Fargo Commercial
Mortgage Trust | |
Series 2014-LC18 A5 3.405% 12/15/47 | | | 275,000 | | | | 280,027 | |
Series2015-C30 XA 0.917% 9/15/58● | | | 6,259,317 | | | | 287,248 | |
Series 2015-NXS3 A4 3.617% 9/15/57 | | | 510,000 | | | | 523,898 | |
Series 2016-BNK1 A3 2.652% 8/15/49 | | | 1,220,000 | | | | 1,184,304 | |
Series2017-C38 A5 3.453% 7/15/50 | | | 905,000 | | | | 917,747 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal | | | Value | |
| | | amount° | | | (US $) | |
| |
Non-Agency Commercial Mortgage-Backed Securities(continued) | |
| |
Wells Fargo Commercial Mortgage Trust
Series 2017-RB1 XA
1.278% 3/15/50● | | | 8,474,068 | | | $ | 684,713 | |
| | | | | | | | |
TotalNon-Agency Commercial Mortgage-Backed Securities
(cost $83,171,270) | | | | 83,092,670 | |
| | | | | | | | |
| | | | | | | | |
| |
Regional Bonds – 0.32%D | |
| |
Argentina – 0.02% | | | | | | | | |
Provincia de Cordoba 144A
7.125% 8/1/27 # | | | 675,000 | | | | 479,932 | |
| | | | | | | | |
| | | | | | | 479,932 | |
| | | | | | | | |
Australia – 0.04% | | | | | | | | |
New South Wales Treasury
4.00% 5/20/26 | | AUD | 404,900 | | | | 326,285 | |
Queensland Treasury | | | | | | | | |
144A 2.75%
8/20/27 # | | AUD | 446,000 | | | | 330,416 | |
144A 3.25%
7/21/28 # | | AUD | 495,000 | | | | 380,385 | |
| | | | | | | | |
| | | | | | | 1,037,086 | |
| | | | | | | | |
Canada – 0.05% | | | | | | | | |
Province of Ontario | | | | | | | | |
2.60% 6/2/27 | | CAD | 203,000 | | | | 155,007 | |
3.45% 6/2/45 | | CAD | 551,000 | | | | 462,859 | |
Province of Quebec | | | | | | | | |
1.65% 3/3/22 | | CAD | 419,000 | | | | 312,644 | |
6.00% 10/1/29 | | CAD | 155,000 | | | | 154,165 | |
| | | | | | | | |
| | | | | | | 1,084,675 | |
| | | | | | | | |
Finland – 0.06% | | | | | | | | |
Municipality Finance | | | | | | | | |
144A 1.75%
5/21/19 # | | | 1,000,000 | | | | 998,962 | |
144A 2.909% (LIBOR03M + 0.17%) 2/7/20 #● | | | 485,000 | | | | 485,744 | |
| | | | | | | | |
| | | | | | | 1,484,706 | |
| | | | | | | | |
Spain – 0.15% | | | | | | | | |
Autonomous Community of Catalonia
4.90% 9/15/21 | | EUR | 1,800,000 | | | | 2,191,989 | |
4.95% 2/11/20 | | EUR | 1,100,000 | | | | 1,277,544 | |
| | | | | | | | |
| | | | | | | 3,469,533 | |
| | | | | | | | |
Total Regional Bonds
(cost $7,902,469) | | | | | | | 7,555,932 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal | | | Value | |
| | | amount° | | | (US $) | |
| |
Loan Agreements – 3.99% | |
| |
Acrisure Tranche B
1st Lien 6.879% (LIBOR03M + 4.25%) 11/22/23● | | | 893,659 | | | $ | 888,347 | |
Alpha 3 Tranche B1
1st Lien 5.601% (LIBOR03M + 3.00%) 1/31/24● | | | 317,833 | | | | 311,675 | |
Altice France Tranche B11
1st Lien 5.249% (LIBOR01M + 2.75%) 7/31/25● | | | 1,146,478 | | | | 1,071,599 | |
Altice France Tranche B12
1st Lien 6.171% (LIBOR01M + 3.688%) 1/31/26● | | | 307,295 | | | | 290,701 | |
Altice France Tranche B13
1st Lien 6.484% (LIBOR01M + 4.00%) 8/14/26● | | | 134,663 | | | | 129,164 | |
AMC Entertainment Holdings Tranche B 1st Lien 0.00% 3/20/26● X | | | 1,485,000 | | | | 1,476,879 | |
American Airlines Tranche B
1st Lien 4.484% (LIBOR01M + 2.00%) 12/14/23● | | | 2,156,083 | | | | 2,124,584 | |
Applied Systems 2nd Lien 9.499% (LIBOR01M + 7.00%) 9/19/25● | | | 965,000 | | | | 976,761 | |
Applied Systems Tranche B 1st Lien 5.499% (LIBOR01M + 3.00%) 9/19/24● | | | 1,240,554 | | | | 1,226,856 | |
Aramark Services Tranche B3
1st Lien 4.249% (LIBOR01M + 1.75%) 3/11/25● | | | 1,013,575 | | | | 1,007,234 | |
AssuredPartners Tranche B
1st Lien 5.749% (LIBOR01M + 3.25%) 10/22/24● | | | 1,433,167 | | | | 1,390,172 | |
Avis Budget Car Rental Tranche B 1st Lien 4.50% (LIBOR01M + 2.00%) 2/13/25 =● | | | 314,209 | | | | 307,827 | |
Ball Metalpack Finco Tranche B 1st Lien 6.999% (LIBOR01M + 4.50%) 7/31/25● | | | 356,402 | | | | 353,302 | |
Ball Metalpack Finco Tranche B 2nd Lien 11.249% (LIBOR01M + 8.75%) 7/31/26 =● | | | 118,000 | | | | 116,065 | |
Bausch Health Americas Tranche B 1st Lien 5.481% (LIBOR01M + 3.00%) 6/1/25● | | | 343,396 | | | | 341,312 | |
80
| | | | | | | | |
| | | Principal | | | Value | |
| | | amount° | | | (US $) | |
| |
Loan Agreements (continued) | |
| |
Blue Ribbon 1st Lien 6.49% (LIBOR01M + 4.00%) 11/13/21● | | | 977,577 | | | $ | 879,819 | |
Bombardier Recreational Products Tranche B
1st Lien 4.50% (LIBOR01M + 2.00%) 5/23/25● | | | 557,200 | | | | 546,474 | |
Boxer Parent Tranche B
1st Lien 6.851% (LIBOR03M + 4.25%) 10/2/25● | | | 758,100 | | | | 743,980 | |
Builders FirstSource
1st Lien 5.601% (LIBOR03M + 3.00%) 2/29/24● | | | 559,285 | | | | 542,972 | |
BWAY Holding Tranche B
1st Lien 6.033% (LIBOR03M + 3.25%) 4/3/24● | | | 398,659 | | | | 389,888 | |
Calpine Construction Finance 1st Lien 4.999% (LIBOR01M + 2.50%) 1/15/25● | | | 250,816 | | | | 248,112 | |
Calpine Tranche B9 1st Lien 0.00% 4/1/26● X | | | 360,000 | | | | 356,887 | |
Change Healthcare Holdings Tranche B
1st Lien 5.249% (LIBOR01M + 2.75%) 3/1/24● | | | 355,868 | | | | 351,420 | |
Charter Communications Operating Tranche B
1st Lien 4.50% (LIBOR01M + 2.00%) 4/30/25● | | | 576,680 | | | | 573,540 | |
Chemours Tranche B2 1st Lien 4.25% (LIBOR01M + 1.75%) 4/3/25● | | | 1,301,411 | | | | 1,286,755 | |
CityCenter Holdings Tranche B 1st Lien 4.749% (LIBOR01M + 2.25%) 4/18/24● | | | 1,020,000 | | | | 1,001,300 | |
Core & Main Tranche B
1st Lien 5.626% (LIBOR03M + 3.00%) 8/1/24● | | | 897,673 | | | | 892,040 | |
CROWN Americas Tranche B
1st Lien 4.484% (LIBOR01M + 2.00%) 4/3/25● | | | 254,001 | | | | 254,993 | |
CSC Holdings 1st Lien
4.734% (LIBOR01M + 2.25%) 7/17/25● | | | 422,475 | | | | 411,491 | |
CSC Holdings Tranche B
1st Lien 4.984% (LIBOR01M + 2.50%) 1/25/26● | | | 292,788 | | | | 286,886 | |
Datto 1st Lien 0.00%
3/29/26 =● X | | | 500,000 | | | | 497,500 | |
| | | | | | | | |
| | | Principal | | | Value | |
| | | amount° | | | (US $) | |
| |
Loan Agreements (continued) | |
| |
DaVita Tranche B
1st Lien 5.243% (LIBOR03M + 2.75%) 6/24/21● | | | 121,916 | | | $ | 122,049 | |
Deerfield Dakota Holding
Tranche B 1st Lien 5.749% (LIBOR01M + 3.25%)
2/13/25● | | | 126,720 | | | | 124,146 | |
Delek US Holdings Tranche B
1st Lien 4.749% (LIBOR01M + 2.25%) 3/30/25● | | | 808,041 | | | | 801,981 | |
Digicel International Finance Tranche B 1st Lien 5.88% (LIBOR03M + 3.25%)
5/27/24● | | | 477,631 | | | | 425,888 | |
DTZ US Borrower Tranche B 1st Lien 5.749% (LIBOR01M + 3.25%) 8/21/25● | | | 1,293,500 | | | | 1,285,617 | |
Dun & Bradstreet Tranche B 1st Lien 7.49% (LIBOR01M + 5.00%) 2/6/26● | | | 205,000 | | | | 203,548 | |
Dynatrace 1st Lien 5.743%
(LIBOR04M + 3.25%)
8/23/25● | | | 1,022,438 | | | | 1,020,041 | |
Edgewater Generation
Tranche B 1st Lien 6.249% (LIBOR01M + 3.75%) 12/13/25● | | | 309,225 | | | | 309,080 | |
Envision Healthcare Tranche B 1st Lien 6.249% (LIBOR01M + 3.75%) 10/11/25● | | | 301,245 | | | | 282,355 | |
Equitrans Midstream Tranche B 1st Lien 7.00% (LIBOR01M + 4.50%) 1/31/24● | | | 423,938 | | | | 426,057 | |
ESH Hospitality Tranche B
1st Lien 4.499% (LIBOR01M + 2.00%) 8/30/23● | | | 1,860,260 | | | | 1,847,305 | |
ExamWorks Group Tranche B1
1st Lien 5.749% (LIBOR01M + 3.25%) 7/27/23● | | | 1,025,680 | | | | 1,020,551 | |
First Data 1st Lien
Loan 4.486% (LIBOR01M + 2.00%) 7/10/22● | | | 425,347 | | | | 424,749 | |
Loan 4.486% (LIBOR01M + 2.00%) 4/26/24● | | | 1,969,227 | | | | 1,965,535 | |
Flex Acquisition
1st Lien 5.626% (LIBOR01M + 3.00%) 12/29/23● | | | 197,557 | | | | 191,939 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Loan Agreements(continued) | |
| |
Flying Fortress Holdings
Tranche B 1st Lien 4.351% (LIBOR03M + 1.75%) 10/30/22● | | | 496,000 | | | $ | 495,432 | |
Gardner Denver Tranche B1
1st Lien 5.249% (LIBOR01M + 2.75%) 7/30/24● | | | 366,450 | | | | 366,507 | |
Gates Global Tranche B2
1st Lien 5.249% (LIBOR01M + 2.75%) 3/31/24● | | | 709,808 | | | | 703,407 | |
Gentiva Health Services
1st Lien 6.25% (LIBOR01M + 3.75%) 7/2/25 =● | | | 257,710 | | | | 257,545 | |
GIP III Stetson I Tranche B 1st Lien 6.732% (LIBOR01M + 4.25%) 7/18/25● | | | 328,934 | | | | 326,673 | |
Gray Television Tranche B2 1st Lien 4.732% (LIBOR01M + 2.25%) 2/7/24● | | | 1,498,322 | | | | 1,482,804 | |
Greenhill & Co. Tranche B
1st Lien 6.285% (LIBOR02M + 3.75%) 10/12/22● | | | 304,013 | | | | 306,673 | |
Grizzly Finco Tranche B
1st Lien 6.047% (LIBOR03M + 3.25%) 10/1/25● | | | 373,125 | | | | 372,659 | |
GVC Holdings Tranche B2 1st Lien 4.999% (LIBOR01M + 2.50%) 3/16/24● | | | 824,670 | | | | 822,093 | |
HCA Tranche B10
1st Lien 4.499% (LIBOR01M + 2.00%) 3/13/25● | | | 1,559,250 | | | | 1,559,250 | |
HCA Tranche B11
1st Lien 4.249% (LIBOR01M + 1.75%) 3/18/23● | | | 220,642 | | | | 220,608 | |
Heartland Dental
1st Lien 6.249% (LIBOR01M + 3.75%) 4/30/25● | | | 703,290 | | | | 684,829 | |
H-Food Holdings
1st Lien 6.186% (LIBOR01M + 3.688%) 5/31/25● | | | 185,967 | | | | 181,317 | |
Hilton Worldwide Finance
Tranche B2 1st Lien 4.236% (LIBOR01M + 1.75%) 10/25/23● | | | 1,275,249 | | | | 1,272,629 | |
Hoya Midco Tranche B
1st Lien 5.993% (LIBOR01M + 3.50%) 6/30/24● | | | 697,575 | | | | 676,648 | |
HUB International Tranche B 1st Lien 5.515% (LIBOR03M + 2.75%) 4/25/25● | | | 1,042,125 | | | | 1,009,450 | |
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Loan Agreements(continued) | |
| |
Hyperion Insurance Group Tranche B 1st Lien 6.00% (LIBOR01M + 3.50%) 12/20/24● | | | 743,547 | | | $ | 741,457 | |
INEOS US Finance Tranche B
1st Lien 4.499% (LIBOR01M + 2.00%) 3/31/24● | | | 948,000 | | | | 931,781 | |
IQVIA Tranche B3
1st Lien 4.249% (LIBOR01M + 1.75%) 6/11/25● | | | 1,022,275 | | | | 1,007,260 | |
Iron Mountain Tranche B
1st Lien 4.249% (LIBOR01M + 1.75%) 1/2/26● | | | 728,371 | | | | 708,796 | |
JBS USA LUX Tranche B
1st Lien 4.983% (LIBOR01M + 2.50%) 10/30/22● | | | 415,847 | | | | 413,352 | |
Kronos Tranche B
1st Lien 5.736% (LIBOR03M + 3.00%) 11/1/23● | | | 525,421 | | | | 520,372 | |
Lamar Media Tranche B
1st Lien 4.25% (LIBOR01M + 1.75%) 3/16/25● | | | 395,503 | | | | 395,005 | |
Las Vegas Sands Tranche B 1st Lien 4.249% (LIBOR01M + 1.75%) 3/27/25● | | | 194,020 | | | | 190,867 | |
Lucid Energy Group II Borrower 1st Lien 5.486% (LIBOR01M + 3.00%) 2/18/25● | | | 725,159 | | | | 689,127 | |
LUX HOLDCO III 1st Lien 5.579% (LIBOR02M + 3.00%) 3/28/25● | | | 221,760 | | | | 220,374 | |
MGM Growth Properties Operating Partnership Tranche B 1st Lien 4.499% (LIBOR01M + 2.00%)
3/25/25● | | | 795,289 | | | | 784,685 | |
Microchip Technology
1st Lien 4.50% (LIBOR01M + 2.00%) 5/29/25● | | | 1,013,785 | | | | 1,003,483 | |
MPH Acquisition Holdings Tranche B 1st Lien 5.351% (LIBOR03M + 2.75%)
6/7/23● | | | 1,039,166 | | | | 1,007,081 | |
NCI Building Systems Tranche B 1st Lien 6.547% (LIBOR03M + 3.75%)
4/12/25● | | | 372,188 | | | | 355,439 | |
Neiman Marcus Group
1st Lien 5.733% (LIBOR01M + 3.25%) 10/25/20● | | | 260,898 | | | | 243,015 | |
82
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Loan Agreements(continued) | |
| |
NFP Tranche B 1st Lien 5.499% (LIBOR01M + 3.00%) 1/8/24● | | | 894,323 | | | $ | 863,357 | |
ON Semiconductor Tranche B3 1st Lien 4.249% (LIBOR01M + 1.75%) 3/31/23● | | | 1,810,462 | | | | 1,794,620 | |
Panda Stonewall Tranche B1 1st Lien 8.101% (LIBOR03M + 5.50%) 11/13/21● | | | 288,120 | | | | 285,959 | |
Panther BF Aggregator 2 Tranche B 1st Lien 0.00% 3/18/26● X | | | 80,000 | | | | 79,198 | |
Penn National Gaming
Tranche B1 1st Lien 4.749% (LIBOR01M + 2.25%) 10/15/25● | | | 1,745,625 | | | | 1,727,987 | |
Plaskolite PPC Intermediate II 1st Lien 6.734% (LIBOR01M + 4.25%) 12/14/25● | | | 417,953 | | | | 418,214 | |
PQ Tranche B 1st Lien 5.244% (LIBOR03M + 2.50%)
2/8/25● | | | 1,412,739 | | | | 1,398,612 | |
Prestige Brands Tranche B5
1st Lien 4.499% (LIBOR01M + 2.00%) 1/26/24● | | | 699,145 | | | | 693,246 | |
Radiate Holdco Tranche B
1st Lien 5.499% (LIBOR01M + 3.00%) 2/1/24● | | | 650,449 | | | | 636,559 | |
Refinitiv US Holdings Tranche B 1st Lien 6.249% (LIBOR01M + 3.75%) 10/1/25● | | | 368,078 | | | | 357,687 | |
RPI Finance Trust Tranche B6 1st Lien 4.499% (LIBOR01M + 2.00%) 4/17/23● | | | 98,428 | | | | 97,946 | |
Russell Investments US Institutional Holdco Tranche B 1st Lien 5.851% (LIBOR03M + 3.25%)
6/1/23● | | | 2,094,758 | | | | 2,065,302 | |
Sable International Finance Tranche B4 1st Lien 5.749% (LIBOR01M + 3.25%) 1/31/26● | | | 285,000 | | | | 284,389 | |
SBA Senior Finance II Tranche B 1st Lien 4.50% (LIBOR01M + 2.00%) 4/11/25● | | | 957,763 | | | | 938,906 | |
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Loan Agreements(continued) | |
| |
Scientific Games International Tranche B5 1st Lien 5.314% (LIBOR02M + 2.75%)
8/14/24● | | | 1,697,402 | | | $ | 1,653,451 | |
Sinclair Television Group Tranche B2 1st Lien 4.75% (LIBOR01M + 2.25%)
1/3/24● | | | 2,580,600 | | | | 2,564,069 | |
Solenis International 1st Lien 6.629% (LIBOR03M + 4.00%) 6/26/25● | | | 277,900 | | | | 274,166 | |
Sprint Communications Tranche B 1st Lien Loan 5.00% (LIBOR01M + 2.50%)
2/3/24● | | | 1,547,928 | | | | 1,504,393 | |
Loan 5.50% (LIBOR01M + 3.00%) 2/3/24 =● | | | 453,863 | | | | 441,098 | |
SS&C European Holdings Tranche B4 1st Lien 4.749% (LIBOR01M + 2.25%)
4/16/25● | | | 345,027 | | | | 342,619 | |
SS&C Technologies Tranche B3 1st Lien 4.749% (LIBOR01M + 2.25%)
4/16/25● | | | 479,872 | | | | 476,523 | |
StandardAero Aviation Holdings 1st Lien 6.24% (LIBOR01M + 3.75%) 7/7/22● | | | 491,141 | | | | 491,448 | |
Staples 1st Lien 6.489% (LIBOR01M + 4.00%)
9/12/24● | | | 421,999 | | | | 419,851 | |
Stars Group Holdings Tranche B 1st Lien 6.101% (LIBOR03M + 3.50%)
7/10/25● | | | 851,903 | | | | 851,570 | |
Summit Materials Tranche B 1st Lien 4.499% (LIBOR01M + 2.00%) 11/21/24● | | | 725,813 | | | | 712,657 | |
Summit Midstream Partners Holdings Tranche B
1st Lien 8.499% (LIBOR01M + 6.00%) 5/21/22● | | | 289,960 | | | | 288,148 | |
Surgery Center Holdings
1st Lien 5.75% (LIBOR01M + 3.25%) 8/31/24● | | | 1,080,883 | | | | 1,064,333 | |
Syneos Health Tranche B
1st Lien 4.499% (LIBOR01M + 2.00%) 8/1/24● | | | 436,380 | | | | 433,808 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Loan Agreements(continued) | |
| |
Tecta America 1st Lien
6.999% (LIBOR01M + 4.50%) 11/21/25 =● | | | 518,700 | | | $ | 512,216 | |
Telenet Financing USD
TrancheAN-DD 1st Lien 4.734% (LIBOR01M + 2.25%) 8/15/26● | | | 1,045,000 | | | | 1,025,406 | |
Thor Industries Tranche B
1st Lien 6.25% (LIBOR01M + 3.75%) 2/1/26● | | | 851,771 | | | | 816,093 | |
Titan Acquisition Tranche B
1st Lien 5.499% (LIBOR01M + 3.00%) 3/28/25● | | | 1,170,449 | | | | 1,089,981 | |
TMS International Tranche B2 1st Lien 5.40% (LIBOR03M + 2.75%) 8/14/24 =● | | | 207,635 | | | | 204,520 | |
TransDigm Tranche F 1st Lien 4.999% (LIBOR01M + 2.50%) 6/9/23● | | | 1,015,799 | | | | 993,420 | |
Trident TPI Holdings 1st Lien 5.749% (LIBOR01M + 3.25%) 10/5/24● | | | 272,118 | | | | 263,274 | |
Tronox Blocked Borrower Tranche B 1st Lien 5.499% (LIBOR01M + 3.00%) 9/22/24● | | | 227,420 | | | | 226,832 | |
Tronox Finance Tranche B 1st Lien 5.499% (LIBOR01M + 3.00%) 9/22/24● | | | 491,157 | | | | 489,886 | |
United Rentals North America Tranche B 1st Lien 4.249% (LIBOR01M + 1.75%) 10/31/25● | | | 69,650 | | | | 69,476 | |
Unitymedia Finance Tranche D 1st Lien 4.734% (LIBOR01M + 2.25%) 1/15/26● | | | 295,000 | | | | 292,480 | |
Unitymedia Finance Tranche E 1st Lien 4.484% (LIBOR01M + 2.00%) 6/1/23● | | | 1,020,000 | | | | 1,007,568 | |
UPC Financing Partnership Tranche AR 1st Lien 4.984% (LIBOR01M + 2.50%) 1/15/26● | | | 88,544 | | | | 88,328 | |
Upfield USA Tranche B2 1st Lien 5.603% (LIBOR03M + 3.00%) 7/2/25● | | | 683,833 | | | | 666,452 | |
USI Tranche B 1st Lien 5.601% (LIBOR03M + 3.00%) 5/16/24● | | | 2,169,920 | | | | 2,099,398 | |
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
Loan Agreements(continued) | |
| |
USIC Holdings 1st Lien 5.749% (LIBOR01M + 3.25%)
12/9/23● | | | 657,928 | | | $ | 642,851 | |
Utz Quality Foods 1st Lien 5.999% (LIBOR01M + 3.50%) 11/21/24● | | | 168,715 | | | | 168,715 | |
Vantage Specialty Chemicals 2nd Lien 10.851% (LIBOR03M + 8.25%) 10/26/25● | | | 40,000 | | | | 38,800 | |
Vantage Specialty Chemicals Tranche B 1st Lien 6.058% (LIBOR03M + 3.50%) 10/28/24● | | | 166,126 | | | | 163,218 | |
Virgin Media Bristol Tranche K 1st Lien 4.984% (LIBOR01M + 2.50%) 1/15/26● | | | 515,000 | | | | 509,896 | |
Vistra Operations Tranche B3 1st Lien 4.486% (LIBOR01M + 2.00%) 12/1/25● | | | 779,113 | | | | 769,276 | |
Visual Comfort Group
1st Lien 5.499% (LIBOR01M + 3.00%) 2/28/24 =● | | | 769,348 | | | | 769,386 | |
VVC Holding Tranche B
1st Lien 7.197% (LIBOR03M + 4.50%) 2/11/26● | | | 1,360,000 | | | | 1,341,867 | |
Wand NewCo 3 Tranche B
1st Lien 5.982% (LIBOR01M + 3.50%) 2/5/26● | | | 425,000 | | | | 425,996 | |
Western Digital Tranche B4
1st Lien 4.249% (LIBOR01M + 1.75%) 4/29/23● | | | 121,182 | | | | 118,152 | |
WR Grace &Co-Conn Tranche B1 1st Lien 4.351% (LIBOR03M + 1.75%)
4/3/25● | | | 73,316 | | | | 72,308 | |
WR Grace &Co-Conn Tranche B2 1st Lien 4.351% (LIBOR03M + 1.75%)
4/3/25● | | | 125,684 | | | | 123,956 | |
Wyndham Hotels & Resorts Tranche B 1st Lien 4.249% (LIBOR01M + 1.75%)
5/30/25● | | | 1,119,375 | | | | 1,106,957 | |
Wynn Resorts Tranche B
1st Lien 4.75% (LIBOR01M + 2.25%) 10/30/24● | | | 775,000 | | | | 759,823 | |
XPO Logistics Tranche B
1st Lien 4.499% (LIBOR01M + 2.00%) 2/24/25● | | | 1,032,000 | | | | 1,014,988 | |
84
| | | | | | | | |
| | | Principal amount° | | | Value
(US $) | |
| |
Loan Agreements(continued) | |
| |
Zayo Group Tranche B2 1st Lien 4.749% (LIBOR01M + 2.25%) 1/19/24● | | | 933,567 | | | $ | 929,483 | |
Zekelman Industries 1st Lien 4.74% (LIBOR01M + 2.25%) 6/14/21● | | | 969,940 | | | | 961,755 | |
| | | | | | | | |
Total Loan Agreements
(cost $95,564,766) | | | | 94,600,867 | |
| | | | | | | | |
| | | | | | | | |
| |
Sovereign Bonds – 3.66%D | |
| |
Argentina – 0.03% | | | | | |
Argentine Republic Government International Bond 5.625% 1/26/22 | | | 930,000 | | | | 803,985 | |
| | | | | | | | |
| | | | | | | 803,985 | |
| | | | | | | | |
Bermuda – 0.03% | | | | | | | | |
Bermuda Government International Bond 144A 3.717% 1/25/27 # | | | 800,000 | | | | 793,000 | |
| | | | | | | | |
| | | | | | | 793,000 | |
| | | | | | | | |
Brazil – 0.09% | | | | | | | | |
Brazil Notas do Tesouro Nacional Series F 10.00% 1/1/27 | | BRL | 7,619,000 | | | | 2,071,141 | |
| | | | | | | | |
| | | | | | | 2,071,141 | |
| | | | | | | | |
Canada – 0.04% | | | | | | | | |
Canadian Government Bond 2.75% 12/1/48 | | CAD | 171,000 | | | | 152,222 | |
Export Development Canada 2.625% 2/21/24 | | | 685,000 | | | | 693,676 | |
| | | | | | | | |
| | | | | | | 845,898 | |
| | | | | | | | |
Colombia – 0.10% | | | | | | | | |
Colombian TES 7.00% 6/30/32 | | COP | 7,187,000,000 | | | | 2,300,596 | |
| | | | | | | | |
| | | | | | | 2,300,596 | |
| | | | | | | | |
Cyprus – 0.06% | | | | | | | | |
Cyprus Government International Bond 3.875% 5/6/22 | | EUR | 1,200,000 | | | | 1,501,507 | |
| | | | | | | | |
| | | | | | | 1,501,507 | |
| | | | | | | | |
Egypt – 0.06% | | | | | | | | |
Egypt Government International Bonds 144A 5.577% 2/21/23 # | | | 280,000 | | | | 278,550 | |
| | | | | | | | |
| | | Principal amount° | | | Value
(US $) | |
| |
Sovereign BondsD(continued) | |
| |
Egypt (continued) | | | | | |
Egypt Government International Bonds | | | | | |
144A 7.60% 3/1/29 # | | | 505,000 | | | $ | 519,628 | |
144A 8.70% 3/1/49 # | | | 605,000 | | | | 630,733 | |
| | | | | | | | |
| | | | | | | 1,428,911 | |
| | | | | | | | |
France – 0.02% | | | | | | | | |
French Republic Government Bond O.A.T. 144A 2.00% 5/25/48 # | | EUR | 390,000 | | | | 512,749 | |
| | | | | | | | |
| | | | | | | 512,749 | |
| | | | | | | | |
Ghana – 0.04% | | | | | | | | |
Ghana Government International Bond 144A 7.875% 3/26/27 # | | | 915,000 | | | | 925,551 | |
| | | | | | | | |
| | | | | | | 925,551 | |
| | | | | | | | |
Hungary – 0.03% | | | | | |
Hungary Government Bond 3.00% 10/27/27 | | HUF | 204,200,000 | | | | 744,925 | |
| | | | | | | | |
| | | | | | | 744,925 | |
| | | | | | | | |
Italy – 0.01% | | | | | | | | |
Italy Buoni Poliennali Del Tesoro 144A 3.45% 3/1/48 # | | EUR | 235,000 | | | | 264,120 | |
| | | | | | | | |
| | | | | | | 264,120 | |
| | | | | | | | |
Ivory Coast – 0.05% | | | | | |
Ivory Coast Government International Bond 144A 6.125% 6/15/33 # | | | 1,150,000 | | | | 1,062,010 | |
| | | | | | | | |
| | | | | | | 1,062,010 | |
| | | | | | | | |
Japan – 1.95% | | | | | | | | |
Japan Bank for International Cooperation | | | | | | | | |
2.125% 6/1/20 | | | 700,000 | | | | 696,810 | |
3.221% (LIBOR03M + 0.57%) 2/24/20● | | | 1,018,000 | | | | 1,022,566 | |
3.375% 10/31/23 | | | 386,000 | | | | 398,724 | |
Japan Treasury Discount Bill 0.00% 4/22/19≠ | | JPY | 4,890,000,000 | | | | 44,125,731 | |
| | | | | | | | |
| | | | | | | 46,243,831 | |
| | | | | | | | |
Jordan – 0.02% | | | | | | | | |
Jordan Government International Bond 144A 5.75% 1/31/27 # | | | 400,000 | | | | 392,864 | |
| | | | | | | | |
| | | | | | | 392,864 | |
| | | | | | | | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
Sovereign BondsD (continued) | |
| |
Kuwait – 0.14% | | | | | | | | |
Kuwait International Government Bond 144A 2.75% 3/20/22 # | | | 3,400,000 | | | $ | 3,402,659 | |
| | | | | | | | |
| | | | | | | 3,402,659 | |
| | | | | | | | |
Mexico – 0.08% | | | | | | | | |
Mexican Bonos 7.75% 5/29/31 | | MXN | 27,900,000 | | | | 1,390,354 | |
Mexico Government International Bond 4.35% 1/15/47 | | | 600,000 | | | | 563,250 | |
| | | | | | | | |
| | | | | | | 1,953,604 | |
| | | | | | | | |
Nigeria – 0.03% | | | | | | | | |
Nigeria Government International Bond 144A 7.875% 2/16/32 # | | | 620,000 | | | | 645,917 | |
| | | | | | | | |
| | | | | | | 645,917 | |
| | | | | | | | |
Poland – 0.02% | | | | | | | | |
Republic of Poland Government Bonds | | | | | | | | |
2.50% 1/25/23 | | PLN | 634,000 | | | | 168,423 | |
3.25% 7/25/25 | | PLN | 1,087,000 | | | | 297,627 | |
| | | | | | | | |
| | | | | | | 466,050 | |
| | | | | | | | |
Qatar – 0.12% | | | | | | | | |
Qatar Government International Bonds | | | | | | | | |
144A 4.00% 3/14/29 # | | | 490,000 | | | | 505,769 | |
144A 5.103% 4/23/48 # | | | 2,200,000 | | | | 2,414,500 | |
| | | | | | | | |
| | | | | | | 2,920,269 | |
| | | | | | | | |
Republic of Korea – 0.01% | | | | | |
Export-Import Bank of Korea 4.00% 6/7/27 | | AUD | 210,000 | | | | 159,219 | |
| | | | | | | | |
| | | | | | | 159,219 | |
| | | | | | | | |
Russia – 0.03% | | | | | | | | |
Russian Foreign Bond - Eurobond 144A 4.25% 6/23/27 # | | | 600,000 | | | | 598,997 | |
| | | | | | | | |
| | | | | | | 598,997 | |
| | | | | | | | |
Saudi Arabia – 0.39% | |
Saudi Government International Bonds | | | | | | | | |
2.375% 10/26/21 | | | 200,000 | | | | 196,854 | |
144A 2.875% 3/4/23 # | | | 2,200,000 | | | | 2,182,565 | |
3.25% 10/26/26 | | | 1,000,000 | | | | 975,342 | |
144A 4.375% 4/16/29 # | | | 720,000 | | | | 751,591 | |
144A 4.50% 10/26/46 # | | | 800,000 | | | | 783,302 | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
Sovereign BondsD (continued) | | | | | |
| |
Saudi Arabia (continued) | |
Saudi Government International Bonds 144A 5.00%
4/17/49 # | | | 4,200,000 | | | $ | 4,358,554 | |
| | | | | | | | |
| | | | | | | 9,248,208 | |
| | | | | | | | |
Senegal – 0.04% | | | | | |
Senegal Government International Bond 144A 6.75% 3/13/48 # | | | 960,000 | | | | 888,480 | |
| | | | | | | | |
| | | | | | | 888,480 | |
| | | | | | | | |
South Africa – 0.09% | | | | | |
Republic of South Africa Government Bonds | | | | | | | | |
8.00% 1/31/30 | | ZAR | 22,918,000 | | | | 1,465,168 | |
8.75% 1/31/44 | | ZAR | 11,636,000 | | | | 730,623 | |
| | | | | | | | |
| | | | | | | 2,195,791 | |
| | | | | | | | |
Spain – 0.01% | | | | | | | | |
Spain Government Bond 144A 2.70% 10/31/48 # | | EUR | 230,000 | | | | 283,639 | |
| | | | | | | | |
| | | | | | | 283,639 | |
| | | | | | | | |
Turkey – 0.04% | | | | | | | | |
Turkey Government International Bonds | | | | | | | | |
5.75% 5/11/47 | | | 680,000 | | | | 541,875 | |
7.625% 4/26/29 | | | 500,000 | | | | 496,373 | |
| | | | | | | | |
| | | | | | | 1,038,248 | |
| | | | | | | | |
Ukraine – 0.06% | | | | | |
Ukraine Government International Bonds | | | | | | | | |
144A 7.75% 9/1/26 # | | | 900,000 | | | | 848,093 | |
144A 9.75% 11/1/28 # | | | 515,000 | | | | 532,124 | |
| | | | | | | | |
| | | | | | | 1,380,217 | |
| | | | | | | | |
United Kingdom – 0.02% | | | | | |
United Kingdom Gilt | | | | | | | | |
1.75% 9/7/22 | | GBP | 100,000 | | | | 135,050 | |
3.50% 1/22/45 | | GBP | 138,800 | | | | 254,656 | |
| | | | | | | | |
| | | | | | | 389,706 | |
| | | | | | | | |
Uruguay – 0.02% | | | | | |
Uruguay Government International Bond 4.375% 1/23/31 | | | 515,000 | | | | 540,879 | |
| | | | | | | | |
| | | | | | | 540,879 | |
| | | | | | | | |
86
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
Sovereign BondsD (continued) | | | | | |
| |
Uzbekistan – 0.03% | | | | | |
Republic of Uzbekistan Bond 144A 5.375% 2/20/29 # | | | 690,000 | | | $ | 686,453 | |
| | | | | | | | |
| | |
| | | | | | | 686,453 | |
| | | | | | | | |
Total Sovereign Bonds
(cost $86,716,412) | | | | 86,689,424 | |
| | | | | | | | |
| | | | | | | | |
| |
Supranational Banks – 0.62% | | | | | |
| |
Arab Petroleum Investments | | | | | |
144A 4.125% 9/18/23 # | | | 750,000 | | | | 774,742 | |
Asian Development Bank 3.50% 5/30/24 | | NZD | 864,000 | | | | 626,795 | |
Banque Ouest Africaine de Developpement 144A 5.00%
7/27/27 # | | | 1,000,000 | | | | 1,000,500 | |
Council of Europe Development Bank 1.50% 5/17/19 | | | 1,365,000 | | | | 1,363,046 | |
European Bank for Reconstruction & Development 2.602% (LIBOR03M + 0.00%) 3/23/20● | | | 505,000 | | | | 505,038 | |
European Investment Bank | | | | | | | | |
1.00% 9/21/26 | | GBP | 318,000 | | | | 407,193 | |
1.25% 5/15/19 | | | 2,710,000 | | | | 2,705,983 | |
2.625% 3/15/24 | | | 610,000 | | | | 618,183 | |
6.00% 12/7/28 | | GBP | 771,000 | | | | 1,419,269 | |
FMS Wertmanagement
2.75% 1/30/24 | | | 340,000 | | | | 346,074 | |
Inter-American Development Bank 3.007% (LIBOR03M + 0.22%) 10/15/20● | | | 890,000 | | | | 893,156 | |
International Bank for Reconstruction & Development | | | | | | | | |
1.25% 4/26/19 | | | 500,000 | | | | 499,539 | |
1.95% 11/9/20 | | | 800,000 | | | | 793,694 | |
2.50% 11/25/24 | | | 440,000 | | | | 443,101 | |
2.552% (LIBOR01M + 0.07%) 4/17/19● | | | 440,000 | | | | 440,016 | |
3.00% 2/2/23 | | NZD | 705,000 | | | | 497,727 | |
3.375% 1/25/22 | | NZD | 300,000 | | | | 212,512 | |
4.625% 10/6/21 | | NZD | 380,000 | | | | 276,288 | |
International Finance | | | | | | | | |
2.375% 7/19/23 | | CAD | 693,000 | | | | 529,648 | |
3.625% 5/20/20 | | NZD | 163,000 | | | | 113,286 | |
3.75% 8/9/27 | | NZD | 305,000 | | | | 225,944 | |
| | | | | | | | |
Total Supranational Banks
(cost $14,580,394) | | | | 14,691,734 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
US Treasury Obligations – 26.28% | | | | | |
| |
US Treasury Bonds | | | | | | | | |
2.50% 2/15/45 | | | 37,100,000 | | | $ | 35,092,107 | |
2.75% 8/15/42 | | | 900,000 | | | | 898,365 | |
2.75% 11/15/42 | | | 1,400,000 | | | | 1,396,473 | |
2.875% 5/15/43 | | | 2,200,000 | | | | 2,239,187 | |
2.875% 8/15/45 | | | 16,700,000 | | | | 16,965,831 | |
3.00% 5/15/47 | | | 900,000 | | | | 935,051 | |
3.00% 8/15/48 | | | 3,770,000 | | | | 3,912,480 | |
3.00% 2/15/49 | | | 870,000 | | | | 903,373 | |
3.125% 5/15/48 | | | 1,490,000 | | | | 1,583,998 | |
4.375% 5/15/40 | | | 100,000 | | | | 127,504 | |
US Treasury Floating Rate Note
2.51% (USBMMY3M + 0.115%) 1/31/21● | | | 3,270,000 | | | | 3,267,377 | |
US Treasury Inflation Indexed Notes | | | | | | | | |
0.125% 4/15/22 | | | 3,312,064 | | | | 3,279,081 | |
0.125% 7/15/26 | | | 21,002 | | | | 20,558 | |
0.25% 1/15/25 | | | 9,352,024 | | | | 9,259,236 | |
0.375% 7/15/27 | | | 6,997,200 | | | | 6,950,081 | |
0.625% 4/15/23¥ | | | 2,979,308 | | | | 3,001,617 | |
0.625% 1/15/26 | | | 8,580,654 | | | | 8,683,896 | |
0.75% 7/15/28 | | | 2,506,925 | | | | 2,565,165 | |
0.875% 1/15/29 | | | 1,196,244 | | | | 1,235,882 | |
1.75% 1/15/28 | | | 14,562,301 | | | | 16,098,250 | |
2.375% 1/15/25 | | | 9,080,516 | | | | 10,090,448 | |
2.375% 1/15/27 | | | 1,622,621 | | | | 1,856,418 | |
2.50% 1/15/29 | | | 35,172 | | | | 41,723 | |
US Treasury Notes | | | | | | | | |
0.875% 7/31/19 | | | 2,470,000 | | | | 2,457,071 | |
1.125% 8/31/21¥ | | | 13,800,000 | | | | 13,438,290 | |
1.25% 4/30/19 | | | 2,180,000 | | | | 2,178,801 | |
1.25% 6/30/19 | | | 3,365,000 | | | | 3,354,682 | |
1.50% 10/31/19 | | | 83,500,000 | | | | 83,046,636 | |
1.875% 7/31/22 | | | 39,700,000 | | | | 39,256,476 | |
2.00% 10/31/21¥ | | | 1,600,000 | | | | 1,590,563 | |
2.00% 11/30/22¥ | | | 7,700,000 | | | | 7,641,047 | |
2.00% 5/31/24 | | | 25,200,000 | | | | 24,900,259 | |
2.00% 6/30/24 | | | 7,700,000 | | | | 7,604,803 | |
2.125% 11/30/24 | | | 9,400,000 | | | | 9,327,481 | |
2.25% 3/31/26 | | | 13,100,000 | | | | 13,050,875 | |
2.25% 2/15/27 | | | 3,400,000 | | | | 3,377,023 | |
2.50% 1/31/21 | | | 21,250,000 | | | | 21,330,518 | |
2.50% 1/31/24 | | | 10,000,000 | | | | 10,122,461 | |
2.50% 2/28/26 | | | 11,300,000 | | | | 11,435,954 | |
2.625% 7/31/20 | | | 12,000,000 | | | | 12,041,016 | |
2.625% 12/31/23 | | | 61,130,000 | | | | 62,209,330 | |
2.625% 3/31/25 | | | 12,700,000 | | | | 12,941,846 | |
2.625% 2/15/29 | | | 33,590,000 | | | | 34,248,021 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Principal
amount° | | | Value
(US $) | |
| |
US Treasury Obligations(continued) | |
| |
US Treasury Notes | | | | | | | | |
2.75% 7/31/23 | | | 46,200,000 | | | $ | 47,193,480 | |
2.75% 2/15/24¥ | | | 4,000,000 | | | | 4,094,453 | |
2.875% 7/31/25 | | | 15,500,000 | | | | 16,025,850 | |
2.875% 11/30/25 | | | 8,100,000 | | | | 8,383,500 | |
3.125% 11/15/28¥ | | | 38,500,000 | | | | 40,887,450 | |
| | | | | | | | |
Total US Treasury Obligations
(cost $616,055,366) | | | | | | | 622,541,987 | |
| | | | | | | | |
| | |
| | | Number of
shares | | | | |
| |
Common Stock – 0.00% | | | | | | | | |
| |
Adelphia Recovery Trust =† | | | 1 | | | | — | |
Century Communications =† | | | 1,975,000 | | | | — | |
| | | | | | | | |
Total Common Stock
(cost $59,791) | | | | | | | — | |
| | | | | | | | |
|
| |
Convertible Preferred Stock – 0.29% | | | | | |
| |
A Schulman 6.00% exercise price $52.33 y | | | 1,141 | | | | 1,178,083 | |
AMG Capital Trust II 5.15% exercise price $198.02, maturity date 10/15/37 | | | 12,029 | | | | 613,476 | |
Assurant 6.50% exercise price $106.91, maturity date 3/15/21 | | | 7,416 | | | | 768,891 | |
Bank of America 7.25% exercise price $50.00 y | | | 417 | | | | 542,880 | |
Becton Dickinson 6.125% exercise price $211.80, maturity date 5/1/20 | | | 10,485 | | | | 648,078 | |
DTE Energy 6.50% exercise price $116.31, maturity date 10/1/19 | | | 15,559 | | | | 861,191 | |
El Paso Energy Capital Trust I 4.75% exercise price $34.49, maturity date 3/31/28 | | | 16,971 | | | | 919,319 | |
QTS Realty Trust 6.50% exercise price $47.03y | | | 7,404 | | | | 804,222 | |
Wells Fargo & Co. 7.50% exercise price $156.71y | | | 325 | | | | 420,014 | |
| | | | | | | | |
| | |
Total Convertible Preferred Stock
(cost $6,484,007) | | | | | | | 6,756,154 | |
| | | | | | | | |
|
| |
Preferred Stock – 0.09% | | | | | | | | |
| |
Bank of America 6.50%µy | | | 1,150,000 | | | | 1,248,469 | |
General Electric 5.00%µy | | | 300,000 | | | | 280,057 | |
Morgan Stanley 5.55%µy | | | 240,000 | | | | 244,273 | |
| | | | | | | | |
| | | Number of
shares | | | Value
(US $) | |
| |
Preferred Stock(continued) | | | | | |
| |
USB Realty 144A 3.93% (LIBOR03M + 1.147%)#y● | | | 500,000 | | | $ | 430,737 | |
| | | | | | | | |
Total Preferred Stock
(cost $2,229,700) | | | | | | | 2,203,536 | |
| | | | | | | | |
| | |
| | | Number of
contracts | | | | |
| |
Options Purchased – 0.00% | | | | | |
| |
Futures Call Option – 0.00% | | | | | |
US Treasury 10 yr Note strike price $143, expiration date 5/24/19, notional amount $1,816,100,000 | | | 127 | | | | — | |
US Ultra Bond strike price $210, expiration date 5/24/19, notional amount $294,000,000 | | | 14 | | | | — | |
| | | | | | | | |
| | | | | | | — | |
| | | | | | | | |
Futures Put Option – 0.00% | | | | | |
US Treasury 2 yr Note strike price $105, expiration date 5/24/19, notional amount $1,785,000,000 | | | 85 | | | | — | |
| | | | | | | | |
| | | | | | | — | |
| | | | | | | | |
Total Options Purchased
(premium paid $1,865) | | | | | | | — | |
| | | | | | | | |
88
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
Short-Term Investments – 8.21% | | | | | |
| |
Discount Notes – 1.12%≠ | |
Bank of Montreal Bankers Acceptance | | | | | | | | |
1.851% 4/15/19 | | CAD | 6,600,000 | | | | 4,934,677 | |
1.856% 4/12/19 | | CAD | 3,000,000 | | | | 2,243,372 | |
Canadian Imperial Bank Bankers Acceptance | | | | | | | | |
1.816% 4/25/19 | | CAD | 11,800,000 | | | | 8,818,190 | |
Royal Bank of Canada Bankers Acceptance | | | | | | | | |
1.80% 4/22/19 | | CAD | 14,000,000 | | | | 10,463,935 | |
| | | | | | | | |
| | | | | | | 26,460,174 | |
| | | | | | | | |
| | |
| | | Number of
shares | | | | |
Money Market Mutual Funds – 2.13% | | | | | |
BlackRock FedFund - Institutional Shares(seven-day effective yield 2.36%) | | | 10,097,700 | | | | 10,097,700 | |
Fidelity Investments Money Market Government Portfolio - Class I(seven-day effective yield 2.31%) | | | 10,097,700 | | | | 10,097,700 | |
GS Financial Square Government Fund - Institutional Shares(seven-day effective yield 2.32%) | | | 10,097,700 | | | | 10,097,700 | |
Morgan Stanley Government Portfolio - Institutional Share Class(seven-day effective yield 2.33%) | | | 10,097,700 | | | | 10,097,700 | |
State Street Institutional US Government Money Market Fund - Investor Class(seven-day effective yield 2.31%) | | | 10,097,700 | | | | 10,097,700 | |
| | | | | | | | |
| | | | | | | 50,488,500 | |
| | | | | | | | |
| | | | | | | | |
| | | Principal amount° | | | Value (US $) | |
| |
Short-Term Investments(continued) | | | | | |
| |
Repurchase Agreements – 4.96% | |
US Treasury repurchase agreement with Barclays Capital 3.45%, dated 3/28/19, to be repurchased 4/1/19, repurchase price $32,209,258 (collateralized by US government obligation; 2.75% 4/30/23; market value $32,798,702) | | | 32,200,000 | | | $ | 32,200,000 | |
US Treasury repurchase agreement with J.P. Morgan Securities 2.51%, dated 3/29/19, to be repurchased 4/2/19, repurchase price $52,414,614 (collateralized by US government obligation;1.625%-3.00%5/15/26-11/15/45; market value $52,731,511) | | | 52,400,000 | | | | 52,400,000 | |
US Treasury repurchase agreement with J.P. Morgan Securities 3.50%, dated 3/28/19, to be repurchased 4/1/19, repurchase price $32,809,567 (collateralized by US government obligation; 3.00% 11/15/45; market value $33,415,284) | | | 32,800,000 | | | | 32,800,000 | |
| | | | | | | | |
| | | | | | | 117,400,000 | |
| | | | | | | | |
Total Short-Term Investments
(cost $194,317,688) | | | | 194,348,674 | |
| | | | | | | | |
| |
Total Value of Securities Before Options Written – 119.13%
(cost $2,798,496,502) | | | | 2,821,903,438 | |
| | | | | | | | |
| | |
| | | Number of
contracts | | | | |
| |
Options Written – 0.00% | | | | | | | | |
| |
Put Swaptions – 0.00% | | | | | | | | |
CDX.OP.IG 31 5 yr V1 I strike price $1, expiration date 4/17/19, notional amount ($500,000) (BNP) | | | (500,000 | ) | | | (5 | ) |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | |
| | | Number of
contracts | | | Value
(US $) | |
| |
Options Written (continued) | | | | | |
| |
CDX.OP.IG 31 5 yr V1 I strike price $1, expiration date 4/17/19, notional amount ($600,000) (CITI) | | | (600,000 | ) | | $ | (5 | ) |
CDX.OP.IG 31 5 yr V1 I strike price $1, expiration date 5/15/19, notional amount ($700,000) (CITI) | | | (700,000 | ) | | | (92 | ) |
CDX.OP.IG 31 5 yr V1 I strike price $1.05, expiration date 4/17/19, notional amount ($630,000) (CITI) | | | (600,000 | ) | | | (2 | ) |
CDX.OP.IG 31 5 yr V1 I strike price $1.15, expiration date 4/17/19, notional amount ($2,875,000) (BA) | | | (2,500,000 | ) | | | (3 | ) |
CDX.OP.IG 31 5 yr V1 I strike price $1.15, expiration date 4/17/19, notional amount ($690,000) (CITI) | | | (600,000 | ) | | | (1 | ) |
CDX.OP.IG 31 5 yr V1 I strike price $1.20, expiration date 4/17/19, notional amount ($720,000) (CITI) | | | (600,000 | ) | | | — | |
CDX.OP.IG 31 5yr V1 I strike price $1.20, expiration date 5/15/19, notional amount ($600,000) (BA) | | | (600,000 | ) | | | (16 | ) |
| | | | | | | | |
| | | | | | | (124 | ) |
| | | | | | | | |
Total Options Written
(premium received $6,738) | | | | (124 | ) |
| | | | | | | | |
| # | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At March 31, 2019, the aggregate value of Rule 144A securities was $418,572,446, which represents 17.67% of the Fund’s net assets. See Note 10 in “Notes to financial statements.” |
| ◆ | Pass Through Agreement. Security represents the contractual right to receive a proportionate amount of underlying payments due to |
| | the counterparty pursuant to various agreements related to the rescheduling of obligations and the exchange of certain notes. |
| PIK. 100% of the income received was in the form of both cash and par. |
| = | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the disclosure table located in Note 3 in “Notes to financial statements.” |
| ≠ | The rate shown is the effective yield at the time of purchase. |
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| D | Securities have been classified by country of origin. |
| µ | Fixed to variable rate investment. The rate shown reflects the fixed rate in effect at March 31, 2019. Rate will reset at a future date. |
| S | Interest only security. An interest only security is the interest only portion of a fixed income security, which is separated and sold individually from the principal portion of the security. |
| y | No contractual maturity date. |
| W | Principal only security. A principal only security is the principal only portion of a fixed income security which is separated and sold individually from the interest portion of the security. |
| † | Non-income producing security. |
| ● | Variable rate investment. Rates reset periodically. Rate shown reflects the rate in effect at March 31, 2019. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. The reference rate descriptions (i.e. LIBOR03M, LIBOR06M, etc.) used in this report are identical for different securities, but the underlying reference rates may differ due to the timing of the reset period. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their description above. |
| X | This loan will settle after March 31, 2019, at which time the interest rate, based on the LIBOR and the agreed upon spread on trade date, will be reflected. |
| f | Step coupon bond. Stated rate in effect at March 31, 2019 through maturity date. |
| ¥ | Fully or partially pledged as collateral for futures and swap contracts. |
90
The following foreign currency exchange contracts, futures contracts, and swap contracts were outstanding at March 31, 2019:1
Foreign Currency Exchange Contracts
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Contracts to
Receive (Deliver) | | | In Exchange For | | Settlement
Date | | Unrealized
Appreciation | | | Unrealized
Depreciation | |
BA | | AUD | (3,195,133) | | | USD | 2,279,852 | | | | 4/26/19 | | | $ | 9,892 | | | $ | — | |
BA | | CAD | (8,543,000) | | | USD | 6,367,415 | | | | 4/2/19 | | | | — | | | | (26,027 | ) |
BA | | CAD | (3,000,000) | | | USD | 2,251,816 | | | | 4/12/19 | | | | 6,093 | | | | — | |
BA | | CAD | (6,600,000) | | | USD | 4,954,337 | | | | 4/15/19 | | | | 13,370 | | | | — | |
BA | | CAD | 430,720 | | | USD | (326,929 | ) | | | 4/26/19 | | | | — | | | | (4,389 | ) |
BA | | CAD | 8,543,000 | | | USD | (6,372,305 | ) | | | 5/3/19 | | | | 26,170 | | | | — | |
BA | | EUR | 19,622,000 | | | USD | (22,083,873 | ) | | | 4/2/19 | | | | — | | | | (65,385 | ) |
BA | | EUR | 938,738 | | | USD | (1,066,737 | ) | | | 4/26/19 | | | | — | | | | (11,210 | ) |
BA | | EUR | (27,623,000) | | | USD | 31,169,488 | | | | 5/3/19 | | | | 90,883 | | | | — | |
BA | | GBP | (37,000) | | | USD | 48,416 | | | | 4/2/19 | | | | 216 | | | | — | |
BA | | JPY | (108,073,375) | | | USD | 980,871 | | | | 4/26/19 | | | | 3,283 | | | | — | |
BA | | NZD | 129,589 | | | USD | (88,524 | ) | | | 4/26/19 | | | | — | | | | (229 | ) |
BA | | SGD | (9,478,080) | | | USD | 7,008,734 | | | | 6/19/19 | | | | 4,189 | | | | — | |
BA | | TRY | (3,024,000) | | | USD | 534,842 | | | | 4/1/19 | | | | — | | | | (4,045 | ) |
BNP | | AUD | (1,474,280) | | | USD | 1,051,455 | | | | 4/26/19 | | | | 4,063 | | | | — | |
BNP | | EUR | 977,000 | | | USD | (1,097,728 | ) | | | 4/1/19 | | | | — | | | | — | |
BNP | | EUR | (1,710,000) | | | USD | 1,928,583 | | | | 4/2/19 | | | | 9,736 | | | | — | |
BNP | | GBP | 10,307,000 | | | USD | (13,562,318 | ) | | | 4/2/19 | | | | — | | | | (135,199 | ) |
BNP | | GBP | (10,307,000) | | | USD | 13,583,084 | | | | 5/3/19 | | | | 134,944 | | | | — | |
BNP | | INR | 23,338,266 | | | USD | (323,334 | ) | | | 6/19/19 | | | | 9,205 | | | | — | |
BNP | | JPY | (4,890,000,000) | | | USD | 45,063,725 | | | | 4/22/19 | | | | 847,422 | | | | — | |
BNP | | MXN | 3,079,632 | | | USD | (159,000 | ) | | | 4/26/19 | | | | — | | | | (1,054 | ) |
BNP | | NOK | (3,327,664) | | | USD | 387,378 | | | | 4/26/19 | | | | 1,135 | | | | — | |
BNP | | TWD | (186,760,561) | | | USD | 6,076,280 | | | | 6/19/19 | | | | 4,840 | | | | — | |
BNYM | | AUD | (8,975) | | | USD | 6,357 | | | | 4/1/19 | | | | — | | | | (16 | ) |
BNYM | | CAD | (4,650) | | | USD | 3,477 | | | | 4/1/19 | | | | — | | | | (3 | ) |
CITI | | CAD | 8,702,000 | | | USD | (6,615,185 | ) | | | 4/2/19 | | | | — | | | | (102,751 | ) |
CITI | | CAD | (8,400,000) | | | USD | 6,359,243 | | | | 5/15/19 | | | | 65,966 | | | | — | |
CITI | | COP | 7,581,360,440 | | | USD | (2,429,681 | ) | | | 4/26/19 | | | | — | | | | (55,705 | ) |
CITI | | EUR | (1,000,000) | | | USD | 1,123,185 | | | | 4/1/19 | | | | — | | | | — | |
CITI | | EUR | (1,110,000) | | | USD | 1,247,057 | | | | 4/2/19 | | | | 1,490 | | | | — | |
CITI | | EUR | 1,000,000 | | | USD | (1,126,200 | ) | | | 5/3/19 | | | | — | | | | (1,101 | ) |
CITI | | GBP | (10,307,000) | | | USD | 13,578,388 | | | | 4/2/19 | | | | 151,269 | | | | — | |
CITI | | JPY | (114,136,812) | | | USD | 1,029,300 | | | | 4/1/19 | | | | — | | | | — | |
CITI | | JPY | 127,200,000 | | | USD | (1,149,472 | ) | | | 4/26/19 | | | | 1,128 | | | | — | |
CITI | | JPY | (414,700,000) | | | USD | 3,770,000 | | | | 5/8/19 | | | | 15,526 | | | | — | |
CITI | | KRW | (128,438,975) | | | USD | 114,965 | | | | 6/19/19 | | | | 1,806 | | | | — | |
CITI | | MXN | 754,000 | | | USD | (38,982 | ) | | | 4/24/19 | | | | — | | | | (299 | ) |
HSBC | | EUR | 1,310,528 | | | USD | (1,493,045 | ) | | | 4/26/19 | | | | — | | | | (19,474 | ) |
HSBC | | GBP | (1,332,923) | | | USD | 1,739,792 | | | | 4/26/19 | | | | 1,274 | | | | — | |
JPMCB | | CAD | (14,000,000) | | | USD | 10,445,604 | | | | 4/22/19 | | | | — | | | | (37,098 | ) |
JPMCB | | CAD | (11,800,000) | | | USD | 8,804,749 | | | | 4/25/19 | | | | — | | | | (31,344 | ) |
JPMCB | | EUR | (17,811,000) | | | USD | 20,328,015 | | | | 4/2/19 | | | | 341,710 | | | | — | |
JPMCB | | JPY | 114,159,345 | | | USD | (1,031,029 | ) | | | 4/1/19 | | | | — | | | | — | |
JPMCB | | PLN | (1,265,105) | | | USD | 331,209 | | | | 4/26/19 | | | | 1,412 | | | | — | |
TDB | | JPY | 456,933,221 | | | USD | (4,147,765 | ) | | | 4/26/19 | | | | — | | | | (14,532 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | |
Total Foreign Currency Exchange Contracts | | | | | | | $ | 1,747,022 | | | $ | (509,861 | ) |
| | | | | | | | | | | | | | | | | | | | |
Schedules of investments
Optimum Fixed Income Fund
Futures Contracts
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Contracts to Buy (Sell) | | Notional
Amount | | | Notional
Cost | | | Expiration
Date | | Value/
Unrealized
Appreciation | | | Value/
Unrealized
Depreciation | | | Variation Margin
Due from
(Due to) Brokers | |
| | | | | | | |
| 122 | | 3 Month Euro Euribor | | $ | 34,285,223 | | | $ | 34,231,461 | | | | 12/14/20 | | | $ | 53,762 | | | $ | — | | | | $ (1,730 | ) |
| (1,193) | | 90 Day Euro | | | (290,659,538 | ) | | | (289,615,543 | ) | | | 6/18/19 | | | | — | | | | (1,043,995 | ) | | | 44,738 | |
| 193 | | 90 Day Euro | | | 47,022,037 | | | | 46,990,968 | | | | 6/18/19 | | | | 31,069 | | | | — | | | | (6,562 | ) |
| 108 | | 90 Day Euro | | | 26,335,800 | | | | 26,277,487 | | | | 9/17/19 | | | | 58,313 | | | | — | | | | (6,750 | ) |
| (12) | | 90 Day Euro | | | (2,933,250 | ) | | | (2,920,733 | ) | | | 6/16/20 | | | | — | | | | (12,517 | ) | | | 2,550 | |
| (30) | | 90 Day Euro | | | (7,338,000 | ) | | | (7,304,818 | ) | | | 9/15/20 | | | | — | | | | (33,182 | ) | | | 6,000 | |
| (272) | | 90 Day Euro | | | (66,541,400 | ) | | | (66,329,221 | ) | | | 12/14/20 | | | | — | | | | (212,179 | ) | | | 48,000 | |
| 176 | | 90 Day Sterling | | | 28,413,207 | | | | 28,406,218 | | | | 6/19/19 | | | | 6,989 | | | | — | | | | 2,855 | |
| (176) | | 90 Day Sterling | | | (28,337,274 | ) | | | (28,235,924 | ) | | | 6/15/22 | | | | — | | | | (101,350 | ) | | | 3,120 | |
| 9 | | Bankers’ Acceptance | | | 1,650,943 | | | | 1,642,693 | | | | 12/17/19 | | | | 8,250 | | | | — | | | | (1,459 | ) |
| 15 | | Bankers’ Acceptance | | | 2,753,255 | | | | 2,736,979 | | | | 3/17/20 | | | | 16,276 | | | | — | | | | (2,557 | ) |
| 62 | | Bankers’ Acceptance | | | 11,383,601 | | | | 11,315,742 | | | | 6/15/20 | | | | 67,859 | | | | — | | | | (10,567 | ) |
| 41 | | Bankers’ Acceptance | | | 7,528,632 | | | | 7,491,276 | | | | 9/14/20 | | | | 37,356 | | | | — | | | | (7,031 | ) |
| 61 | | Bankers’ Acceptance | | | 11,202,277 | | | | 11,210,700 | | | | 12/14/20 | | | | — | | | | (8,423 | ) | | | (6,933 | ) |
| (174) | | Euro-B.T.P | | | (25,270,537 | ) | | | (24,636,457 | ) | | | 6/6/19 | | | | — | | | | (634,080 | ) | | | 25,609 | |
| (45) | | Euro-Bund | | | (8,396,635 | ) | | | (8,212,844 | ) | | | 6/6/19 | | | | — | | | | (183,791 | ) | | | 2,590 | |
| (31) | | Long 10 yr Gilt | | | (5,223,437 | ) | | | (5,137,208 | ) | | | 6/26/19 | | | | — | | | | (86,229 | ) | | | (3,434 | ) |
| 85 | | US Treasury 2 yr Notes | | | 18,112,969 | | | | 18,051,960 | | | | 6/28/19 | | | | 61,009 | | | | — | | | | (18,594 | ) |
| 2,508 | | US Treasury 5 yr Notes | | | 290,496,937 | | | | 287,786,573 | | | | 6/28/19 | | | | 2,710,364 | | | | — | | | | (568,219 | ) |
| 1,012 | | US Treasury 5 yr Notes | | | 117,218,063 | | | | 116,303,393 | | | | 6/28/19 | | | | 914,670 | | | | — | | | | (229,281 | ) |
| (31) | | US Treasury 5 yr Notes | | | (3,590,672 | ) | | | (3,561,228 | ) | | | 6/28/19 | | | | — | | | | (29,444 | ) | | | 7,023 | |
| 602 | | US Treasury 10 yr Notes | | | 74,779,688 | | | | 73,684,235 | | | | 6/19/19 | | | | 1,095,453 | | | | — | | | | (169,313 | ) |
| 442 | | US Treasury 10 yr Notes | | | 54,904,687 | | | | 54,180,717 | | | | 6/19/19 | | | | 723,970 | | | | — | | | | (124,098 | ) |
| (143) | | US Treasury 10 yr Notes | | | (17,763,281 | ) | | | (17,512,691 | ) | | | 6/19/19 | | | | — | | | | (250,590 | ) | | | 40,219 | |
| 248 | | US Treasury Long Bonds | | | 37,114,750 | | | | 36,080,472 | | | | 6/19/19 | | | | 1,034,278 | | | | — | | | | (93,000 | ) |
| 74 | | US Treasury Long Bonds | | | 11,074,562 | | | | 10,766,755 | | | | 6/19/19 | | | | 307,807 | | | | — | | | | (27,750 | ) |
| (13) | | US Treasury Ultra Bonds | | | (2,184,000 | ) | | | (2,104,310 | ) | | | 6/19/19 | | | | — | | | | (79,690 | ) | | | 5,250 | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Futures Contracts | | | | | | $ | 311,586,652 | | | | | | | $ | 7,127,425 | | | $ | (2,675,470 | ) | | | $(1,089,324 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
92
Swap Contracts
CDS Contracts2
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Counterparty/
Reference Obligation/
Termination Date/
Payment Frequency | | Notional
Amount3 | | Annual Protection
Payments | | | Value | | | Upfront
Payments
Paid
(Received) | | | Unrealized
Appreciation4 | | | Unrealized
Depreciation4 | | | Variation Margin
Due from
(Due to) Brokers | |
Centrally Cleared: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Protection Purchased/Moody’s Ratings: | | | | | | | | | | | | | | | | | | | | | |
CDX.NA.HY.31512/20/23-Quarterly | | 980,000 | | | 5.000% | | | $ | (65,257 | ) | | $ | (51,299 | ) | | | $ — | | | $ | (13,958 | ) | | $ | (3,653 | ) |
CDX.NA.IG.31612/20/23-Quarterly | | 1,700,000 | | | 1.000% | | | | (32,966 | ) | | | (30,483 | ) | | | — | | | | (2,483 | ) | | | (2,125 | ) |
Protection Sold Moody’s Ratings: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Citigroup CDS 6.125% 12/20/20 Baa112/20/20-Quarterly | | 700,000 | | | 1.000% | | | | 8,234 | | | | 6,316 | | | | 1,918 | | | | — | | | | 64 | |
Daimler CDS 6.125% 12/20/20 Baa112/20/20-Quarterly | | EUR800,000 | | | 1.000% | | | | 11,421 | | | | 8,335 | | | | 3,086 | | | | — | | | | 171 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | | | (78,568 | ) | | | (67,131 | ) | | | 5,004 | | | | (16,441 | ) | | | (5,543 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Over-The-Counter: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Protection Sold Moody’s Ratings: | | | | | | | | | | | | | | | | | | | | | | | | | | |
BAML Republic of Colombia 10.375% 1/28/33 Baa26/20/21-Quarterly | | 100,000 | | | 1.000% | | | | 1,124 | | | | (1,454 | ) | | | 2,578 | | | | — | | | | — | |
BAML Republic of Colombia 10.375% 1/28/33 Baa26/20/22-Quarterly | | 250,000 | | | 1.000% | | | | 2,758 | | | | (2,452 | ) | | | 5,210 | | | | — | | | | — | |
BNP Republic of Colombia 10.375% 1/28/33 Baa26/20/21-Quarterly | | 200,000 | | | 1.000% | | | | 2,249 | | | | (2,944 | ) | | | 5,193 | | | | — | | | | — | |
CITI Republic of Colombia
10.375% 6/20/24 Baa2 6/20/24- Quarterly | | 200,000 | | | 1.000% | | | | (803 | ) | | | (2,016 | ) | | | 1,213 | | | | — | | | | — | |
CITI Republic of Brazil
4.25% 1/7/25 /Ba26/20/22-Quarterly | | 100,000 | | | 1.000% | | | | (678 | ) | | | (4,077 | ) | | | 3,399 | | | | — | | | | — | |
DB CMBX.NA.AAA710/17/57-Quarterly | | 14,200,000 | | | 0.500% | | | | 141,011 | | | | (887,204 | ) | | | 1,028,215 | | | | — | | | | — | |
DB Republic of Colombia
10.375% 1/28/33 Baa2 6/20/21- Quarterly | | 200,000 | | | 1.000% | | | | 2,248 | | | | (2,908 | ) | | | 5,156 | | | | — | | | | — | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
Counterparty/
Reference Obligation/
Termination Date/
Payment Frequency | | Notional
Amount3 | | Annual Protection
Payments | | Value | | | Upfront
Payments
Paid
(Received) | | | Unrealized
Appreciation4 | | | Unrealized
Depreciation4 | | | Variation Margin
Due from
(Due to) Brokers | |
Protection Sold
Moody’s Ratings (continued): | | | | | | | | | | | | | | | | | | | | |
GSC Republic of Brazil
4.25% 1/7/25 /Ba26/20/22-Quarterly | | 500,000 | | 1.000% | | $ | (3,392 | ) | | $ | (20,928 | ) | | $ | 17,536 | | | $ | — | | | $ | — | |
GSC Republic of Colombia
10.375% 1/28/33 Baa26/20/21-Quarterly | | 3,100,000 | | 1.000% | | | 34,858 | | | | (46,260 | ) | | | 81,118 | | | | — | | | | — | |
JPMCB South Africa 5.50% 3/9/20 Baa312/20/23-Quarterly | | 700,000 | | 1.000% | | | (26,134 | ) | | | (31,943 | ) | | | 5,809 | | | | — | | | | — | |
JPMCB Mexico 5 yr CDS
5.950% 3/19/19 WR12/20/19-Quarterly | | 7,100,000 | | 1.000% | | | 34,232 | | | | 9,754 | | | | 24,478 | | | | — | | | | — | |
JPMCB Republic of Colombia
10.375% 1/28/33 Baa26/20/21-Quarterly | | 100,000 | | 1.000% | | | 1,124 | | | | (1,472 | ) | | | 2,596 | | | | — | | | | — | |
MSCSCMBX.NA.BBB-.675/11/63-Quarterly | | 1,200,000 | | 3.000% | | | (152,367 | ) | | | (160,452 | ) | | | 8,085 | | | | — | | | | — | |
MSCSCMBX.NA.BBB-.675/11/63-Quarterly | | 1,200,000 | | 3.000% | | | (152,367 | ) | | | (125,172 | ) | | | — | | | | (27,195 | ) | | | — | |
MSCSCMBX.NA.BBB-.675/11/63-Quarterly | | 1,200,000 | | 3.000% | | | (152,367 | ) | | | (136,880 | ) | | | — | | | | (15,487 | ) | | | — | |
MSCSCMBX.NA.BBB-.675/11/63-Quarterly | | 605,000 | | 3.000% | | | (76,818 | ) | | | (74,682 | ) | | | — | | | | (2,136 | ) | | | — | |
MSCSCMBX.NA.BBB-.675/11/63-Quarterly | | 600,000 | | 3.000% | | | (76,184 | ) | | | (65,521 | ) | | | — | | | | (10,663 | ) | | | — | |
MSCSCMBX.NA.BBB-.675/11/63-Quarterly | | 600,000 | | 3.000% | | | (76,184 | ) | | | (61,636 | ) | | | — | | | | (14,548 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | (497,690 | ) | | | (1,618,247 | ) | | | 1,190,586 | | | | (70,029 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total CDS Contracts | | | | | | $ | (576,258 | ) | | $ | (1,685,378 | ) | | $ | 1,195,590 | | | $ | (86,470 | ) | | $ | (5,543 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
IRS Contracts8
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Obligation/
Termination Date/
Payment Frequency
(Fixed Rate/Floating Rate) | | Notional Amount3 | | Fixed/Floating
Interest
Rate
Paid
(Received) | | | Value | | | Upfront
Payments
Paid
(Received) | | | Unrealized
Appreciation4 | | | Unrealized
Depreciation4 | | | Variation Margin
Due from
(Due to Brokers) | |
Centrally Cleared: | | | | | | | | | | | | | | | | | | | | | | | | | | |
2 yr IRS912/20/19- (Semiannually/ Quarterly) | | 1,100,000 | | | 2.00%/(2.633%) | | | $ | 4,718 | | | $ | (2,498 | ) | | $ | 7,216 | | | $ | — | | | $ | 111 | |
2 yr IRS96/28/21- (Semiannually/ Quarterly) | | 30,100,000 | | | 1.45%/(2.61%) | | | | 508,866 | | | | — | | | | 508,866 | | | | — | | | | 33,792 | |
94
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Obligation/
Termination Date/
Payment Frequency
(Fixed Rate/Floating Rate) | | Notional Amount3 | | | Fixed/Floating
Interest
Rate
Paid
(Received) | | | Value | | | Upfront
Payments
Paid
(Received) | | | Unrealized
Appreciation4 | | | Unrealized
Depreciation4 | | | Variation Margin
Due from
(Due to Brokers) | |
Centrally Cleared (continued): | | | | | | | | | | | | | | | | | | | | | | | | | |
3 yr IRS96/21/20- (Semiannually/ Quarterly) | | | 32,700,000 | | | | 1.25%/(2.613%) | | | $ | 499,849 | | | $ | 272,289 | | | $ | 227,560 | | | $ | — | | | $ | 13,658 | |
3 yr IRS96/20/21- (Semiannually/ Quarterly) | | | 17,800,000 | | | | 1.75%/(2.633%) | | | | 237,925 | | | | 343,128 | | | | — | | | | (105,203 | ) | | | 21,240 | |
4 yr IRS912/16/19- (Semiannually/ Quarterly) | | | 1,600,000 | | | | 2.00%/(2.615%) | | | | 6,713 | | | | (1,168 | ) | | | 7,881 | | | | — | | | | 158 | |
5 yr OIS FEDL01103/01/20-(Annually/ Annually) | | | 85,700,000 | | | | (2.50%)/2.41% | | | | 152,976 | | | | 40,809 | | | | 112,167 | | | | — | | | | (18,685 | ) |
5 yr OIS FEDL01103/18/20-(Annually/ Annually) | | | 29,200,000 | | | | (2.336%)/2.41% | | | | 14,076 | | | | (309 | ) | | | 14,385 | | | | — | | | | (3,331 | ) |
5 yr IRS95/10/21- (Quarterly/ Quarterly) | | | 15,400,000 | | | | 2.631%/(2.697%) | | | | (9,355 | ) | | | — | | | | — | | | | (9,355 | ) | | | 403 | |
5 yr IRS95/11/21- (Quarterly/ Quarterly) | | | 7,700,000 | | | | 2.688%/(2.697%) | | | | (4,152 | ) | | | — | | | | — | | | | (4,152 | ) | | | 190 | |
5 yr IRS95/14/21- (Quarterly/ Quarterly) | | | 9,600,000 | | | | 2.627%/(2.693%) | | | | (5,778 | ) | | | — | | | | — | | | | (5,778 | ) | | | 230 | |
5 yr IRS98/09/21- (Semiannually/ Quarterly) | | | 6,220,000 | | | | 1.191%/(2.697%) | | | | 166,132 | | | | — | | | | 166,132 | | | | — | | | | 7,524 | |
5 yr OIS FEDL01103/01/22-(Annually/ Annually) | | | 27,700,000 | | | | 2.30%/(2.41%) | | | | (191,290 | ) | | | 19,529 | | | | — | | | | (210,819 | ) | | | 39,550 | |
5 yr IRS94/27/22- (Semiannually/ Quarterly) | | | 2,005,000 | | | | 1.976%/(2.765%) | | | | 19,843 | | | | — | | | | 19,843 | | | | — | | | | 3,380 | |
5 yr IRS96/15/22- (Semiannually/ Quarterly) | | | 1,400,000 | | | | 2.027%/(2.613%) | | | | 11,912 | | | | — | | | | 11,912 | | | | — | | | | 2,431 | |
5 yr IRS98/10/22- (Semiannually/ Quarterly) | | | 2,560,000 | | | | 2.954%/(2.698%) | | | | (53,937 | ) | | | — | | | | — | | | | (53,937 | ) | | | 4,688 | |
5 yr IRS98/30/22- (Semiannually/ Quarterly) | | | 3,035,000 | | | | 1.798%/(2.629%) | | | | 49,502 | | | | — | | | | 49,502 | | | | — | | | | 5,514 | |
5 yr IRS97/27/23- (Semiannually/ Quarterly) | | | 4,820,000 | | | | 2.952%/(2.765%) | | | | (131,693 | ) | | | — | | | | — | | | | (131,693 | ) | | | 10,519 | |
5 yr IRS98/10/23- (Semiannually/ Quarterly) | | | 8,300,000 | | | | 2.964%/(2.698%) | | | | (232,782 | ) | | | — | | | | — | | | | (232,782 | ) | | | 18,232 | |
Schedules of investments
Optimum Fixed Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Obligation/
Termination Date/
Payment Frequency
(Fixed Rate/Floating Rate) | | Notional Amount3 | | | Fixed/Floating
Interest
Rate
Paid
(Received) | | | Value | | | Upfront
Payments
Paid
(Received) | | | Unrealized
Appreciation4 | | | Unrealized
Depreciation4 | | | Variation Margin
Due from
(Due to Brokers) | |
Centrally Cleared (continued): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
5 yr IRS119/18/24- (Semiannually/ Semiannually) | | | GBP | | | | 47,400,000 | | | | 1.25%/(0.952%) | | | $ | (498,358 | ) | | $ | 127,298 | | | $ | — | | | $ | (625,656 | ) | | $ | (7,154 | ) |
7 yr IRS912/16/22- (Semiannually/ Quarterly) | | | | | | | 41,600,000 | | | | 2.25%/(2.615%) | | | | 61,800 | | | | 592,355 | | | | — | | | | (530,555 | ) | | | 80,054 | |
7 yr IRS94/06/23- (Semiannually/ Quarterly) | | | | | | | 750,000 | | | | 1.416%/(2.795%) | | | | 25,300 | | | | — | | | | 25,300 | | | | — | | | | 1,522 | |
10 yr IRS94/05/26- (Semiannually/ Quarterly) | | | | | | | 750,000 | | | | 1.687%/(2.795%) | | | | 31,845 | | | | — | | | | 31,845 | | | | — | | | | 1,885 | |
10 yr IRS91/30/28- (Semiannually/ Quarterly) | | | | | | | 1,780,000 | | | | 2.68%/(2.744%) | | | | (42,691 | ) | | | — | | | | — | | | | (42,691 | ) | | | 5,756 | |
10 yr IRS123/20/28- (Semiannually/ Semiannually) | | | JPY | | | | 5,490,000,000 | | | | 0.30%/(0.005%) | | | | (1,071,922 | ) | | | 279,398 | | | | — | | | | (1,351,320 | ) | | | 8,241 | |
10 yr IRS95/09/28- (Quarterly/ Semiannually) | | | | | | | 14,000,000 | | | | (2.96%)/2.697% | | | | 637,911 | | | | — | | | | 637,911 | | | | — | | | | (38,498 | ) |
10 yr IRS912/19/28- (Semiannually/ Quarterly) | | | | | | | 600,000 | | | | 3.00%/(2.625%) | | | | (30,026 | ) | | | 9,613 | | | | — | | | | (39,639 | ) | | | 1,650 | |
10 yr IRS92/13/29- (Semiannually/ Quarterly) | | | | | | | 2,000,000 | | | | 3.03%/(2.688%) | | | | (105,669 | ) | | | — | | | | — | | | | (105,669 | ) | | | 5,538 | |
30 yr IRS96/15/46- (Semiannually/ Quarterly) | | | | | | | 16,600,000 | | | | 2.50%/(2.611%) | | | | 290,160 | | | | (1,030,743 | ) | | | 1,320,903 | | | | — | | | | 73,192 | |
30 yr IRS96/15/46- (Semiannually/ Quarterly) | | | | | | | 500,000 | | | | 2.50%/(2.611%) | | | | 12,327 | | | | (19,298 | ) | | | 31,625 | | | | — | | | | 1,903 | |
30 yr IRS912/21/46- (Semiannually/ Quarterly) | | | | | | | 900,000 | | | | 2.25%/(2.613%) | | | | 68,518 | | | | (66,789 | ) | | | 135,307 | | | | — | | | | 3,369 | |
30 yr IRS96/20/48- (Semiannually/ Quarterly) | | | | | | | 5,300,000 | | | | 2.50%/(2.633%) | | | | 135,971 | | | | 590,234 | | | | — | | | | (454,263 | ) | | | 21,271 | |
30 yr IRS98/22/48- (Semiannually/ Quarterly) | | | | | | | 4,400,000 | | | | 2.905%/(2.663%) | | | | (266,559 | ) | | | — | | | | — | | | | (266,559 | ) | | | 18,673 | |
30 yr IRS912/19/48- (Semiannually/ Quarterly) | | | | | | | 17,800,000 | | | | 3.00%/(2.625%) | | | | (1,453,006 | ) | | | 706,184 | | | | — | | | | (2,159,190 | ) | | | 76,830 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Total IRS Contracts | | | | | | | | | | | | | | $ | (1,160,874 | ) | | $ | 1,860,032 | | | $ | 3,308,355 | | | $ | (6,329,261 | ) | | $ | 393,836 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
96
The use of foreign currency exchange contracts, futures contracts, and swap contracts involves elements of market risk and risks in excess of the amounts disclosed in these financial statements. The foreign currency exchange contracts and notional amounts presented above represent the Fund’s total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) is reflected in the Fund’s net assets.
Unfunded Loan Commitments13
The Fund may invest in floating rate loans. In connection with these investments, the Fund may also enter into unfunded corporate loan commitments (commitments). Commitments may obligate the Fund to furnish temporary financing to a borrower until permanent financing can be arranged. In connection with these commitments, the Fund earns a commitment fee, typically set as a percentage of the commitment amount. The following unfunded loan commitments were outstanding at March 31, 2019:
| | | | | | | | | | | | | | |
Borrower | | Principal
Amount | | | Cost | | Value | | | Unrealized
Appreciation
(Depreciation) | |
Heartland Dental Tranche DD 1st Lien 3.75% (LIBOR1M+3.75%) 4/30/25 | | $ | 15,739 | | | $15,739 | | $ | 15,326 | | | $ | (413) | |
1See Note 7 in “Notes to financial statements.”
2A CDS contract is a risk-transfer instrument through which one party (purchaser of protection) transfers to another party (seller of protection) the financial risk of a credit event (as defined in the CDS agreement), as it relates to a particular reference security or basket of securities (such as an index). Periodic payments (receipts) on such contracts are accrued daily and recorded as unrealized losses (gains) on swap contracts. Upon payment (receipt), such amounts are recorded as realized losses (gains) on swap contracts. Upfront payments made or received in connection with CDS contracts are amortized over the expected life of the CDS contracts as unrealized losses (gains) on swap contracts. The change in value of CDS contracts is recorded daily as unrealized appreciation or depreciation. A realized gain or loss is recorded upon a credit event (as defined in the CDS agreement) or the maturity or termination of the agreement.
3Notional amount shown is stated in USD unless noted that the swap is denominated in another currency.
4Unrealized appreciation (depreciation) does not include periodic interest payments (receipt) on swap contracts accrued daily in the amount of ($651,331).
5Markit’s North America High Yield CDX Index, or the CDX.NA.HY Index, is composed of 100 liquid North American entities with high yield credit ratings that trade is in the CDS market.
6Markit’s North America Investment Grade Index, or the CDX.NA.IG Index, is composed of 125 liquid North American entities with investment grade credit ratings that trade in the CDS market.
7Markit’s CMBX Index, or the CMBX.NA Index, is a synthetic tradable index referencing a basket of 25 commercial mortgage-backed securities in North America. Credit-quality rating are measured on a scale that generally ranges from AAA (highest) to BB (lowest). US Agency and US Agency mortgage-backed securities appear under US Government.
8An IRS agreement is an exchange of interest rates between counterparties. Periodic payments (receipt) on such contracts are accrued daily and recorded as unrealized appreciation (depreciation) on swap contracts. Upon periodic payment (receipt) or termination of
the contract, such amounts are recorded as realized gains (losses) on swap contracts.
9Rate resets based on LIBOR03M.
10Rate resets based on FEDL01.
11Rate resets based on BP0006M.
12Rate resets based on JPY0006M.
13See Note 10 in “Notes to financial statements.”
Summary of abbreviations:
ABS – Asset-Backed Security
ARM – Adjustable Rate Mortgage
AUD – Australian Dollar
BA – Bank of America, N.A.
BADLARPP – Argentina Term Deposit Rate
BAML – Bank of America Merrill Lynch
BBSW3M – Australian Bank Bill Swap Rate 3 Months
BNP – BNP Paribas
BNYM – The Bank of New York Mellon
BP0003M – 3 Month Sterling LIBOR Interest Rate
BP0006M – 6 Month Sterling LIBOR Interest Rate
BRL – Brazilian Real
B.T.P. – Buoni del Tesoro Poliennali
CAD – Canadian Dollar
CDO – Collateralized Debt Obligation
CDS – Credit Default Swap
CDX.NA.HY – Credit Default Swap Index North America High Yield
CITI – Citibank, N.A.
CLO – Collateralized Loan Obligation
CMBX.NA – Commercial Mortgage-Backed Index North America
COF 11 – Cost of Funds for the 11th District of San Francisco
COP – Colombian Peso
DB – Deutsche Bank AG
Schedules of investments
Optimum Fixed Income Fund
Summary of abbreviations: (continued)
EUR – European Monetary Unit
EUR003M – The Euro Interbank Offered Rate
3 Month
EURIBOR – The Euro Interbank Offered Rate
EUSA5 – Euro 5 year interest swap rate
FEDL01 – Federal Funds Rate at Maturity
FHAVA – Federal Housing Administration and
Veterans Administration
FRA – Forward Rate Agreement
FREMF – Freddie Mac Multifamily
GBP – British Pound Sterling
GNMA – Government National Mortgage
Association
GS – Goldman Sachs
GSC – Goldman Sachs Bank USA
H15T1Y – US Treasury Yield Curve Rate T
Note Constant Maturity 1 Year
HSBC – HSBC Bank USA, National Association
HUF – Hungarian Forint
ICE – Intercontinental Exchange
INR – Indian Rupee
IRS – Interest Rate Swap
JPMBB – JPMorgan Barclays Bank
JPMCB – JPMorgan Chase Bank, National
Association
JPMDB – JPMorgan Deutsche Bank
JPY – Japanese Yen
JPY0006M – Japanese Yen 6 Month LIBOR
Interest Rate
KRW – South Korean Won
LB – Lehman Brothers
LIBOR – London Interbank Offered Rate
LIBOR01M – ICE LIBOR USD 1 Month
LIBOR02M – ICE LIBOR USD 2 Month
LIBOR03M – ICE LIBOR USD 3 Month
LIBOR06M – ICE LIBOR USD 6 Month
LIBOR12M – ICE LIBOR USD 12 Month
MASTR – Mortgage Asset Securitization
Transactions, Inc.
MSCS – Morgan Stanley Capital Services LLC
MXN – Mexican Peso
NOK – Norwegian Krone
NZD – New Zealand Dollar
O.A.T. – Obligations Assimilables du Tresor
(French Treasury Obligation)
PIK –Pay-in-Kind
PLN – Polish Zloty
REMIC – Real Estate Mortgage Investment
Conduit
S.F. – Single Family
SGD – Singapore Dollar
TBA – To be announced
TDB – The Toronto–Dominion Bank
TRY – Turkish Lira
TWD – Taiwan Dollar
USBMMY3M – US Treasury 3 Months Bill
Money Market Yield
USD – US Dollar
yr – Year
ZAR – South African Rand
See accompanying notes, which are an integral part of the financial statements.
98
Optimum International Fund
March 31, 2019
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common Stock – 98.22%D | |
| |
Australia – 3.80% | | | | | | | | |
Aristocrat Leisure | | | 43,747 | | | $ | 762,978 | |
BHP Billiton ADR * | | | 53,154 | | | | 2,905,929 | |
BHP Group | | | 28,223 | | | | 771,429 | |
BlueScope Steel | | | 132,052 | | | | 1,310,682 | |
Cochlear | | | 16,290 | | | | 2,008,596 | |
Fortescue Metals Group | | | 646,254 | | | | 3,270,785 | |
Qantas Airways | | | 1,272,989 | | | | 5,122,430 | |
South32 | | | 1,526,765 | | | | 4,054,768 | |
St Barbara | | | 61,981 | | | | 148,313 | |
Wesfarmers | | | 28,527 | | | | 702,476 | |
| | | | | | | | |
| | | | | | | 21,058,386 | |
| | | | | | | | |
Austria – 1.90% | | | | | | | | |
Erste Group Bank | | | 115,556 | | | | 4,247,105 | |
Raiffeisen Bank International | | | 37,374 | | | | 839,505 | |
Schoeller-Bleckmann Oilfield Equipment * | | | 36,090 | | | | 2,997,380 | |
voestalpine | | | 80,930 | | | | 2,460,135 | |
| | | | | | | | |
| | | | | | | 10,544,125 | |
| | | | | | | | |
Brazil – 3.27% | | | | | | | | |
AES Tiete Energia | | | 89,700 | | | | 254,299 | |
Banco Bradesco ADR | | | 375,558 | | | | 4,097,338 | |
Cia de Saneamento do Parana | | | 63,200 | | | | 1,208,844 | |
Cosan | | | 16,300 | | | | 176,432 | |
Direcional Engenharia | | | 95,800 | | | | 212,625 | |
Eneva † | | | 21,600 | | | | 102,060 | |
FII BTG Pactual Corporate Office Fund | | | 4,005 | | | | 98,607 | |
IRB Brasil Resseguros | | | 56,600 | | | | 1,315,489 | |
Mahle-Metal Leve | | | 17,400 | | | | 108,479 | |
Porto Seguro | | | 78,100 | | | | 1,072,557 | |
Sul America | | | 380,200 | | | | 2,869,452 | |
TOTVS | | | 109,200 | | | | 1,099,991 | |
Transmissora Alianca de Energia Eletrica | | | 320,400 | | | | 2,031,064 | |
Vale | | | 264,200 | | | | 3,450,825 | |
| | | | | | | | |
| | | | | | | 18,098,062 | |
| | | | | | | | |
Cambodia – 0.07% | | | | | | | | |
NagaCorp | | | 270,000 | | | | 378,125 | |
| | | | | | | | |
| | | | | | | 378,125 | |
| | | | | | | | |
Canada – 7.44% | | | | | | | | |
Aecon Group | | | 3,100 | | | | 40,456 | |
Bank of Montreal | | | 75,951 | | | | 5,682,898 | |
Bank of Nova Scotia | | | 73,100 | | | | 3,891,446 | |
Canadian Imperial Bank of Commerce | | | 63,700 | | | | 5,033,651 | |
CGI † | | | 4,800 | | | | 329,985 | |
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common StockD (continued) | |
| |
Canada (continued) | | | | | | | | |
Constellation Software | | | 3,900 | | | $ | 3,305,085 | |
Empire | | | 23,800 | | | | 515,235 | |
iA Financial | | | 2,500 | | | | 92,191 | |
Magna International Class A | | | 74,382 | | | | 3,621,833 | |
Power Corp of Canada | | | 48,000 | | | | 1,119,228 | |
Power Financial | | | 61,300 | | | | 1,432,099 | |
Quebecor Class B | | | 2,800 | | | | 68,641 | |
Rogers Communications Class B (US Shares) * | | | 47,126 | | | | 2,536,321 | |
Rogers Communications Class B | | | 14,700 | | | | 790,578 | |
Royal Bank of Canada | | | 86,234 | | | | 6,505,864 | |
Toronto-Dominion Bank | | | 115,600 | | | | 6,273,291 | |
| | | | | | | | |
| | | | | | | 41,238,802 | |
| | | | | | | | |
Chile – 1.09% | | | | | | | | |
Cia Cervecerias Unidas ADR | | | 2,966 | | | | 87,378 | |
Enel Americas ADR | | | 377,034 | | | | 3,366,914 | |
Sociedad Quimica y Minera de Chile ADR * | | | 67,039 | | | | 2,576,979 | |
| | | | | | | | |
| | | | | | | 6,031,271 | |
| | | | | | | | |
China/Hong Kong – 10.81% 21Vianet Group ADR † | | | 10,154 | | | | 80,623 | |
Angang Steel Class H | | | 2,652,000 | | | | 1,943,050 | |
Anhui Conch Cement Class H | | | 1,365,000 | | | | 8,352,306 | |
ANTA Sports Products | | | 484,000 | | | | 3,299,425 | |
Anton Oilfield Services Group † | | | 1,018,000 | | | | 160,973 | |
Asia Cement China Holdings | | | 393,862 | | | | 388,999 | |
Baidu ADR † | | | 13,885 | | | | 2,288,942 | |
Build King Holdings | | | 210,000 | | | | 39,925 | |
BYD Class H * | | | 469,000 | | | | 2,835,686 | |
Changyou.com ADR | | | 22,945 | | | | 392,359 | |
Chiho Environmental Group † | | | 202,000 | | | | 35,545 | |
China BlueChemical Class H | | | 330,000 | | | | 107,352 | |
China Coal Energy Class H | | | 287,000 | | | | 118,918 | |
China Life Insurance Class H | | | 1,414,000 | | | | 3,812,332 | |
China Oriental Group | | | 528,000 | | | | 332,411 | |
China Overseas Grand Oceans Group | | | 98,000 | | | | 53,418 | |
China Petroleum & Chemical Series H | | | 1,718,000 | | | | 1,363,518 | |
China Railway Group Class H | | | 1,892,000 | | | | 1,727,425 | |
China SCE Group Holdings | | | 495,000 | | | | 258,399 | |
China Shenhua Energy Class H | | | 497,500 | | | | 1,135,390 | |
China Shineway Pharmaceutical Group | | | 43,000 | | | | 43,084 | |
Schedules of investments
Optimum International Fund
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common StockD(continued) | |
| |
China/Hong Kong (continued) | | | | | |
China Telecom ADR | | | 3,292 | | | $ | 184,385 | |
CK Asset Holdings | | | 210,500 | | | | 1,874,670 | |
CLP Holdings | | | 65,500 | | | | 759,708 | |
CNOOC | | | 2,315,000 | | | | 4,312,105 | |
Dongfang Electric Corp Class H † | | | 735,800 | | | | 597,448 | |
Gemdale Properties & Investment | | | 284,000 | | | | 36,235 | |
Guangzhou R&F Properties Class H | | | 278,400 | | | | 603,867 | |
Hilong Holding | | | 176,000 | | | | 23,724 | |
Hisense Home Appliances Group Class H | | | 516,000 | | | | 726,485 | |
Industrial & Commercial Bank of China Class H | | | 7,518,000 | | | | 5,521,103 | |
Kunlun Energy | | | 646,000 | | | | 676,221 | |
Lenovo Group | | | 418,000 | | | | 377,139 | |
Logan Property Holdings | | | 610,000 | | | | 1,011,832 | |
Maanshan Iron & Steel Class H | | | 3,012,000 | | | | 1,476,353 | |
PetroChina Class H | | | 5,854,000 | | | | 3,832,107 | |
Shanghai Fosun Pharmaceutical Group Class H | | | 635,500 | | | | 2,300,170 | |
Shimao Property Holdings | | | 683,500 | | | | 2,141,987 | |
Sinopec Shanghai Petrochemical Class H | | | 200,883 | | | | 95,779 | |
Sinopharm Group Class H | | | 537,600 | | | | 2,241,458 | |
Sinotruk Hong Kong | | | 545,375 | | | | 1,163,991 | |
Times China Holdings | | | 90,000 | | | | 186,971 | |
Weichai Power Class H | | | 602,000 | | | | 966,213 | |
| | | | | | | | |
| | | | | | | 59,880,031 | |
| | | | | | | | |
Colombia – 0.83% | | | | | | | | |
Almacenes Exito | | | 9,000 | | | | 40,991 | |
Bancolombia ADR | | | 71,732 | | | | 3,662,636 | |
Ecopetrol ADR | | | 43,057 | | | | 923,142 | |
| | | | | | | | |
| | | | | | | 4,626,769 | |
| | | | | | | | |
Czech Republic – 0.36% | | | | | | | | |
Komercni banka | | | 49,318 | | | | 2,015,912 | |
| | | | | | | | |
| | | | | | | 2,015,912 | |
| | | | | | | | |
Denmark – 1.19% | | | | | | | | |
H. Lundbeck | | | 82,944 | | | | 3,596,872 | |
Novo Nordisk Class B | | | 57,171 | | | | 2,988,064 | |
| | | | | | | | |
| | | | | | | 6,584,936 | |
| | | | | | | | |
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common StockD(continued) | |
| |
Finland – 0.53% | | | | | | | | |
Finnair | | | 10,192 | | | $ | 91,800 | |
Neste | | | 26,633 | | | | 2,839,097 | |
| | | | | | | | |
| | | | | | | 2,930,897 | |
| | | | | | | | |
France – 4.76% | | | | | | | | |
Capgemini | | | 30,643 | | | | 3,718,278 | |
Eramet | | | 18,471 | | | | 1,028,191 | |
Ipsen | | | 37,933 | | | | 5,201,792 | |
IPSOS | | | 23,199 | | | | 580,975 | |
Peugeot | | | 140,688 | | | | 3,433,018 | |
Safran | | | 48,194 | | | | 6,605,506 | |
Sartorius Stedim Biotech | | | 1,216 | | | | 154,079 | |
Societe Generale | | | 60,255 | | | | 1,740,977 | |
Sodexo | | | 35,279 | | | | 3,884,901 | |
| | | | | | | | |
| | | | | | | 26,347,717 | |
| | | | | | | | |
Germany – 3.96% | | | | | | | | |
Continental | | | 21,185 | | | | 3,195,946 | |
Dermapharm Holding † | | | 1,717 | | | | 54,324 | |
Deutsche Lufthansa | | | 199,641 | | | | 4,388,314 | |
Deutsche Telekom | | | 261,267 | | | | 4,340,477 | |
Elmos Semiconductor | | | 386 | | | | 8,460 | |
Merck | | | 37,405 | | | | 4,270,565 | |
Siltronic | | | 18,741 | | | | 1,653,226 | |
TUI | | | 58,371 | | | | 560,617 | |
TUI (London Shares) | | | 52,381 | | | | 502,403 | |
Vonovia | | | 57,356 | | | | 2,976,522 | |
| | | | | | | | |
| | | | | | | 21,950,854 | |
| | | | | | | | |
Greece – 0.02% | | | | | | | | |
Motor Oil Hellas Corinth Refineries | | | 3,926 | | | | 91,163 | |
| | | | | | | | |
| | | | | | | 91,163 | |
| | | | | | | | |
Hungary – 0.31% | | | | | | | | |
MOL Hungarian Oil & Gas | | | 57,125 | | | | 655,086 | |
OTP Bank | | | 24,671 | | | | 1,087,642 | |
| | | | | | | | |
| | | | | | | 1,742,728 | |
| | | | | | | | |
India – 2.70% | | | | | | | | |
HDFC Bank ADR | | | 38,814 | | | | 4,498,931 | |
Hexaware Technologies | | | 58,768 | | | | 292,918 | |
ICICI Bank ADR | | | 389,722 | | | | 4,466,214 | |
Oil & Natural Gas | | | 1,217,568 | | | | 2,808,007 | |
Reliance Capital | | | 641,988 | | | | 1,896,822 | |
WNS Holdings ADR † | | | 18,807 | | | | 1,001,849 | |
| | | | | | | | |
| | | | | | | 14,964,741 | |
| | | | | | | | |
100
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common StockD(continued) | |
| |
Indonesia – 0.49% | | | | | | | | |
Delta Dunia Makmur † | | | 31,366,400 | | | $ | 1,258,006 | |
Indofood Sukses Makmur | | | 3,235,800 | | | | 1,449,585 | |
| | | | | | | | |
| | | | | | | 2,707,591 | |
| | | | | | | | |
Israel – 3.89% | | | | | | | | |
Bank Hapoalim | | | 991,921 | | | | 6,591,996 | |
Bank Leumi Le-Israel | | | 1,046,680 | | | | 6,857,363 | |
Check Point Software Technologies † | | | 44,753 | | | | 5,660,807 | |
CyberArk Software † | | | 12,850 | | | | 1,529,793 | |
Nice ADR † | | | 2,271 | | | | 278,220 | |
Wix.com † | | | 5,033 | | | | 608,137 | |
| | | | | | | | |
| | | | | | | 21,526,316 | |
| | | | | | | | |
Italy – 1.30% | | | | | | | | |
Enel | | | 529,587 | | | | 3,393,492 | |
La Doria | | | 36,227 | | | | 327,133 | |
Prysmian | | | 147,519 | | | | 2,795,859 | |
Recordati | | | 17,097 | | | | 666,197 | |
| | | | | | | | |
| | | | | | | 7,182,681 | |
| | | | | | | | |
Japan – 10.44% | | | | | | | | |
Akatsuki | | | 2,900 | | | | 167,150 | |
Astellas Pharma | | | 293,500 | | | | 4,410,068 | |
Daiichi Sankyo | | | 24,900 | | | | 1,149,824 | |
Denso | | | 103,100 | | | | 4,028,039 | |
Fujitsu | | | 82,400 | | | | 5,959,135 | |
Hitachi | | | 96,600 | | | | 3,138,595 | |
Hosokawa Micron | | | 1,000 | | | | 44,800 | |
Internet Initiative Japan | | | 1,600 | | | | 32,453 | |
Juki | | | 8,200 | | | | 81,850 | |
Konami Holdings | | | 10,300 | | | | 448,150 | |
Medipal Holdings | | | 29,600 | | | | 704,298 | |
Mitsubishi UFJ Financial Group | | | 39,800 | | | | 196,843 | |
Mixi | | | 88,600 | | | | 2,050,041 | |
NET One Systems | | | 13,700 | | | | 346,447 | |
Nichiha | | | 13,800 | | | | 381,058 | |
Nihon Unisys | | | 2,900 | | | | 76,992 | |
Noritake | | | 600 | | | | 28,821 | |
Oracle Japan | | | 4,500 | | | | 302,619 | |
Rohto Pharmaceutical | | | 85,800 | | | | 2,211,211 | |
Secom | | | 60,300 | | | | 5,171,263 | |
Shizuoka Bank | | | 18,900 | | | | 143,979 | |
Showa | | | 5,000 | | | | 63,947 | |
SoftBank Group | | | 84,800 | | | | 8,266,025 | |
Sumitomo Dainippon Pharma | | | 115,500 | | | | 2,866,604 | |
Sumitomo Mitsui Financial Group | | | 23,500 | | | | 822,940 | |
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common StockD(continued) | |
| |
Japan (continued) | | | | | | | | |
Suzuken | | | 88,500 | | | $ | 5,133,420 | |
Systena | | | 3,800 | | | | 41,436 | |
T&D Holdings | | | 34,400 | | | | 362,259 | |
T-Gaia | | | 78,900 | | | | 1,310,268 | |
Tokyo Electric Power Co. Holdings † | | | 765,400 | | | | 4,842,003 | |
Tokyo Sangyo | | | 4,700 | | | | 21,542 | |
Toray Industries | | | 474,600 | | | | 3,028,604 | |
| | | | | | | | |
| | | | | | | 57,832,684 | |
| | | | | | | | |
Malaysia – 0.09% | | | | | | | | |
AMMB Holdings | | | 218,200 | | | | 243,995 | |
Genting | | | 111,500 | | | | 181,587 | |
Malaysia Airports Holdings | | | 31,637 | | | | 56,197 | |
| | | | | | | | |
| | | | | | | 481,779 | |
| | | | | | | | |
Mexico – 1.30% | | | | | | | | |
Alfa Class A | | | 149,450 | | | | 158,457 | |
Alpek | | | 961,590 | | | | 1,286,562 | |
Credito Real | | | 28,325 | | | | 31,958 | |
Grupo Aeroportuario del Centro Norte | | | 19,792 | | | | 111,582 | |
Grupo Financiero Banorte Class O | | | 656,842 | | | | 3,568,423 | |
Grupo Financiero Inbursa Class O | | | 170,518 | | | | 235,964 | |
Industrias CH Class B † | | | 20,227 | | | | 89,765 | |
Mexichem | | | 711,981 | | | | 1,701,983 | |
| | | | | | | | |
| | | | | | | 7,184,694 | |
| | | | | | | | |
Netherlands – 4.79% | | | | | | | | |
ASR Nederland | | | 30,021 | | | | 1,250,866 | |
EXOR | | | 48,394 | | | | 3,142,888 | |
Heineken | | | 46,638 | | | | 4,929,358 | |
Koninklijke Ahold Delhaize | | | 231,972 | | | | 6,175,968 | |
Koninklijke KPN | | | 529,765 | | | | 1,681,671 | |
Koninklijke Philips | | | 121,375 | | | | 4,959,088 | |
Royal Dutch Shell Class A | | | 141,022 | | | | 4,424,409 | |
| | | | | | | | |
| | | | | | | 26,564,248 | |
| | | | | | | | |
New Zealand – 0.05% | | | | | | | | |
Fisher & Paykel Healthcare | | | 26,112 | | | | 279,533 | |
| | | | | | | | |
| | | | | | | 279,533 | |
| | | | | | | | |
Norway – 2.39% | | | | | | | | |
DNB | | | 297,842 | | | | 5,486,190 | |
Equinor | | | 31,652 | | | | 693,814 | |
Equinor ADR | | | 210,941 | | | | 4,634,374 | |
Norsk Hydro | | | 572,289 | | | | 2,327,386 | |
Petroleum Geo-Services † | | | 50,407 | | | | 116,646 | |
| | | | | | | | |
| | | | | | | 13,258,410 | |
| | | | | | | | |
Schedules of investments
Optimum International Fund
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common StockD(continued) | |
| |
Poland – 0.17% | | | | | | | | |
Asseco Poland | | | 24,238 | | | $ | 327,863 | |
Ciech | | | 12,124 | | | | 169,321 | |
Jastrzebska Spolka Weglowa † | | | 12,737 | | | | 202,527 | |
LiveChat Software | | | 8,172 | | | | 58,518 | |
Lubelski Wegiel Bogdanka † | | | 2,240 | | | | 27,724 | |
Polskie Gornictwo Naftowe i Gazownictwo | | | 69,968 | | | | 114,105 | |
Warsaw Stock Exchange | | | 2,401 | | | | 24,411 | |
| | | | | | | | |
| | | | | | | 924,469 | |
| | | | | | | | |
Portugal – 0.01% | | | | | | | | |
NOS SGPS | | | 8,504 | | | | 54,398 | |
| | | | | | | | |
| | | | | | | 54,398 | |
| | | | | | | | |
Republic of Korea – 3.57% | | | | | |
AK Holdings | | | 1,597 | | | | 71,722 | |
BNK Financial Group | | | 30,687 | | | | 180,696 | |
Daelim Industrial | | | 9,638 | | | | 818,611 | |
DB HiTek | | | 10,623 | | | | 117,252 | |
DGB Financial Group | | | 55,979 | | | | 403,246 | |
Hana Financial Group | | | 3,806 | | | | 122,203 | |
Hancom | | | 9,822 | | | | 116,642 | |
Handsome | | | 2,323 | | | | 91,172 | |
Huneed Technologies † | | | 3,303 | | | | 25,851 | |
Industrial Bank of Korea | | | 61,223 | | | | 758,052 | |
JB Financial Group | | | 37,570 | | | | 184,678 | |
Kia Motors | | | 21,272 | | | | 662,946 | |
KoMiCo | | | 1,475 | | | | 32,762 | |
KT ADR | | | 213,894 | | | | 2,660,841 | |
LG Electronics | | | 48,487 | | | | 3,215,036 | |
LS Industrial Systems | | | 2,066 | | | | 86,647 | |
Mcnex | | | 9,985 | | | | 179,458 | |
MegaStudyEdu | | | 2,005 | | | | 69,462 | |
Samsung Electronics | | | 107,128 | | | | 4,225,442 | |
SK Hynix | | | 81,743 | | | | 5,359,589 | |
Top Engineering | | | 7,295 | | | | 57,983 | |
WiSoL | | | 22,621 | | | | 316,395 | |
Zeus | | | 2,096 | | | | 26,625 | |
| | | | | | | | |
| | | | | | | 19,783,311 | |
| | | | | | | | |
Russia – 0.06% | | | | | | | | |
Globaltrans Investment GDR | | | 3,093 | | | | 32,910 | |
Tatneft ADR | | | 4,613 | | | | 319,573 | |
| | | | | | | | |
| | | | | | | 352,483 | |
| | | | | | | | |
Singapore – 1.34% | | | | | | | | |
DBS Group Holdings | | | 230,200 | | | | 4,297,116 | |
IGG | | | 79,000 | | | | 109,711 | |
Jardine Cycle & Carriage | | | 35,300 | | | | 847,911 | |
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common StockD(continued) | |
| |
Singapore (continued) | | | | | | | | |
United Industrial | | | 872,100 | | | $ | 1,867,752 | |
United Overseas Bank | | | 14,900 | | | | 277,995 | |
| | | | | | | | |
| | | | | | | 7,400,485 | |
| | | | | | | | |
South Africa – 0.47% | | | | | | | | |
AECI | | | 26,475 | | | | 175,708 | |
African Rainbow Minerals | | | 7,628 | | | | 89,639 | |
Anglo American Platinum | | | 18,174 | | | | 927,827 | |
Investec | | | 71,097 | | | | 410,656 | |
MMI Holdings | | | 99,223 | | | | 114,085 | |
Reunert | | | 64,228 | | | | 316,049 | |
Telkom | | | 109,756 | | | | 557,423 | |
| | | | | | | | |
| | | | | | | 2,591,387 | |
| | | | | | | | |
Spain – 2.48% | | | | | | | | |
Amadeus IT Group | | | 96,312 | | | | 7,719,303 | |
Atlantica Yield | | | 243,639 | | | | 4,741,215 | |
Cia de Distribucion Integral Logista Holdings | | | 6,671 | | | | 157,189 | |
Repsol | | | 65,286 | | | | 1,116,931 | |
| | | | | | | | |
| | | | | | | 13,734,638 | |
| | | | | | | | |
Sweden – 0.53% | | | | | | | | |
Betsson | | | 7,275 | | | | 55,206 | |
Getinge Class B | | | 10,223 | | | | 119,216 | |
Swedish Match | | | 35,715 | | | | 1,822,281 | |
Swedish Orphan Biovitrum † | | | 39,650 | | | | 930,126 | |
| | | | | | | | |
| | | | | | | 2,926,829 | |
| | | | | | | | |
Switzerland – 4.17% | | | | | | | | |
Credit Suisse Group ADR | | | 250,817 | | | | 2,922,018 | |
Ferrexpo | | | 1,036,110 | | | | 3,344,195 | |
Novartis ADR | | | 68,371 | | | | 6,573,188 | |
Roche Holding | | | 31,524 | | | | 8,686,592 | |
Sonova Holding | | | 6,111 | | | | 1,211,016 | |
Zehnder Group | | | 11,237 | | | | 380,530 | |
| | | | | | | | |
| | | | | | | 23,117,539 | |
| | | | | | | | |
Taiwan – 2.69% | | | | | | | | |
APCB | | | 67,000 | | | | 62,091 | |
ASE Technology Holding | | | 1,489,671 | | | | 3,267,770 | |
AU Optronics ADR | | | 6,850 | | | | 24,934 | |
Chia Chang | | | 155,000 | | | | 203,408 | |
China Petrochemical Development † | | | 114,000 | | | | 44,853 | |
Elan Microelectronics | | | 143,500 | | | | 413,323 | |
E-LIFE MALL | | | 8,363 | | | | 17,643 | |
Hon Hai Precision Industry | | | 1,109,200 | | | | 2,650,893 | |
Lumax International | | | 22,000 | | | | 50,820 | |
Radiant Opto-Electronics | | | 518,000 | | | | 1,660,527 | |
Simplo Technology | | | 27,000 | | | | 238,706 | |
102
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common StockD(continued) | |
| |
Taiwan (continued) | | | | | | | | |
Taiwan Business Bank | | | 1,457,040 | | | $ | 567,874 | |
Taiwan FamilyMart | | | 17,000 | | | | 123,064 | |
Taiwan Semiconductor Manufacturing | | | 694,000 | | | | 5,558,287 | |
| | | | | | | | |
| | | | | | | 14,884,193 | |
| | | | | | | | |
Thailand – 1.82% | | | | | | | | |
IRPC NVDR | | | 3,935,400 | | | | 712,776 | |
Krung Thai Bank NVDR | | | 2,935,400 | | | | 1,777,732 | |
PTT Exploration & Production | | | 224,800 | | | | 889,000 | |
PTT Exploration & Production NVDR | | | 911,700 | | | | 3,604,953 | |
PTT NVDR | | | 1,162,039 | | | | 1,757,768 | |
Siamgas & Petrochemicals | | | 444,700 | | | | 128,988 | |
Thai Oil NVDR | | | 276,600 | | | | 605,910 | |
Thanachart Capital NVDR | | | 365,600 | | | | 628,061 | |
| | | | | | | | |
| | | | | | | 10,105,188 | |
| | | | | | | | |
Turkey – 0.56% | | | | | | | | |
Celebi Hava Servisi | | | 716 | | | | 8,789 | |
Tupras Turkiye Petrol Rafinerileri | | | 13,850 | | | | 310,628 | |
Turk Hava Yollari † | | | 748,258 | | | | 1,740,911 | |
Turkiye Halk Bankasi | | | 400,884 | | | | 460,785 | |
Turkiye Sise ve Cam | | | | | | | | |
Fabrikalari | | | 574,083 | | | | 601,108 | |
| | | | | | | | |
| | | | | | | 3,122,221 | |
| | | | | | | | |
United Kingdom – 6.53% | | | | | |
3i Group | | | 35,040 | | | | 449,332 | |
Barclays | | | 1,713,753 | | | | 3,451,962 | |
Barratt Developments | | | 14,586 | | | | 113,936 | |
BT Group | | | 117,424 | | | | 341,154 | |
Burberry Group | | | 8,786 | | | | 223,926 | |
Diageo | | | 167,131 | | | | 6,839,345 | |
Dialog Semiconductor † | | | 21,808 | | | | 665,087 | |
Drax Group | | | 60,523 | | | | 298,427 | |
Elektron Technology † | | | 43,955 | | | | 20,323 | |
Evraz | | | 138,163 | | | | 1,117,813 | |
HSBC Holdings | | | 488,970 | | | | 3,973,301 | |
Hudson Class A † | | | 24,568 | | | | 337,810 | |
Indivior † | | | 377,052 | | | | 472,006 | |
International Consolidated Airlines Group | | | 201,763 | | | | 1,342,526 | |
ITV | | | 1,324,355 | | | | 2,194,382 | |
London Stock Exchange Group | | | 12,717 | | | | 786,623 | |
Nomad Foods † | | | 90,386 | | | | 1,848,394 | |
Redrow | | | 21,557 | | | | 168,916 | |
RELX | | | 172,200 | | | | 3,680,707 | |
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common StockD(continued) | |
| |
United Kingdom (continued) | | | | | |
Rio Tinto ADR | | | 76,716 | | | $ | 4,514,737 | |
Softcat | | | 38,345 | | | | 415,110 | |
Unilever CVA | | | 31,089 | | | | 1,812,533 | |
Vodafone Group | | | 610,588 | | | | 1,112,644 | |
| | | | | | | | |
| | | | | | | 36,180,994 | |
| | | | | | | | |
United States – 6.04% | | | | | | | | |
Atlantic Power † | | | 11,200 | | | | 28,076 | |
Atlassian Class A † | | | 21,089 | | | | 2,370,193 | |
Carnival | | | 85,451 | | | | 4,334,075 | |
Core Laboratories | | | 43,707 | | | | 3,012,724 | |
Everest Re Group | | | 19,810 | | | | 4,278,168 | |
ICON † | | | 95,849 | | | | 13,091,056 | |
JBS | | | 935,600 | | | | 3,856,765 | |
Project Star =p† | | | 1,420 | | | | 333,894 | |
Project Star Series G =p† | | | 470 | | | | 110,514 | |
QIAGEN † | | | 44,412 | | | | 1,802,778 | |
QIAGEN † | | | 5,390 | | | | 219,265 | |
| | | | | | | | |
| | | | | | | 33,437,508 | |
| | | | | | | | |
| | |
Total Common Stock
(cost $502,942,643) | | | | | | | 544,118,098 | |
| | | | | | | | |
| | | | | | | | |
| |
Preferred Stock – 0.34%D | |
| |
Brazil – 0.32% | | | | | | | | |
Randon Implementos E Participacoes 1.04% | | | 71,400 | | | | 177,435 | |
Telefonica Brasil 9.57% | | | 133,800 | | | | 1,623,227 | |
| | | | | | | | |
| | | | | | | 1,800,662 | |
| | | | | | | | |
Colombia – 0.02% | | | | | | | | |
Banco Davivienda 2.13% | | | 9,006 | | | | 105,653 | |
| | | | | | | | |
| | | | | | | 105,653 | |
| | | | | | | | |
| | |
Total Preferred Stock
(cost $1,816,495) | | | | | | | 1,906,315 | |
| | | | | | | | |
| | | | | | | | |
| |
Short-Term Investments – 0.66% | |
| |
Money Market Mutual Fund – 0.66% | | | | | |
BlackRock FedFund - Institutional Shares (seven-day effective yield 2.36%) | | | 726,027 | | | | 726,027 | |
Fidelity Investments Money Market Government Portfolio - Class I (seven-day effective yield 2.31%) | | | 726,027 | | | | 726,027 | |
Schedules of investments
Optimum International Fund
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Short-Term Investments(continued) | | | | | |
| |
Money Market Mutual Fund (continued) | | | | | |
GS Financial Square Government Fund - Institutional Shares(seven-day effective yield 2.32%) | | | 726,027 | | | $ | 726,027 | |
Morgan Stanley Government Portfolio - Institutional Share Class(seven-day effective yield 2.33%) | | | 726,027 | | | | 726,027 | |
State Street Institutional US Government Money Market Fund - Investor Class(seven-day effective yield 2.31%) | | | 726,027 | | | | 726,027 | |
| | | | | | | | |
| | | | | | 3,630,135 | |
| | | | | | | | |
| | |
Total Short-Term Investments
(cost $3,630,135) | | | | | | | 3,630,135 | |
| | | | | | | | |
| | |
Total Value of Securities Before Securities Lending Collateral – 99.22%
(cost $508,389,273) | | | | | | | 549,654,548 | |
| | | | | | | | |
| | |
| | | Principal
amount° | | | | |
| |
Securities Lending Collateral – 1.49% | |
| |
Certificate of Deposit – 0.01%≠ | | | | | |
Royal Bank of Canada (Toronto) 2.50% 4/1/19 | | | 60,000 | | | | 60,000 | |
| | | | | | | | |
| | | | | | 60,000 | |
| | | | | | | | |
Repurchase Agreements – 1.42% | | | | | |
Bank of Montreal
2.58%, dated 03/29/19, to be repurchased on 4/1/19, repurchase price $1,923,168 (collateralized by US government obligations 0.00%–3.625% 4/15/19– 9/9/49; market value $1,961,213) | | | 1,922,755 | | | | 1,922,755 | |
| | | | | | | | |
| | | Principal
amount° | | | Value (U.S. $) | |
| |
Securities Lending Collateral(continued) | | | | | |
| |
Repurchase Agreements (continued) | | | | | |
Bank of Nova Scotia
2.65%, dated 03/29/19, to be repurchased on 4/1/19, repurchase price $197,805 (collateralized by US government obligations 0.125%–2.125% 2/29/20–3/31/23; market value $201,761) | | | 197,761 | | | $ | 197,761 | |
Credit Agricole
2.60%, dated 03/29/19, to be repurchased on 4/1/19, repurchase price $1,923,172 (collateralized by US government obligations 0.00%–0.125% 4/25/19–4/15/20; market value $1,961,213) | | | 1,922,755 | | | | 1,922,755 | |
JP Morgan Securities
2.60%, dated 03/29/19, to be repurchased on 4/1/19, repurchase price $1,923,172 (collateralized by US government obligations 0.875%–3.625% 5/15/19–1/31/24; market value $1,961,210) | | | 1,922,755 | | | | 1,922,755 | |
Merrill Lynch, Pierce, Fenner & Smith
2.58%, dated 03/29/19, to be repurchased on 4/1/19, repurchase price $1,923,168 (collateralized by US government obligations 1.375%–2.75% 4/30/21–1/31/23; market value $1,961,213) | | | 1,922,755 | | | | 1,922,755 | |
| | | | | | | | |
| | | | | | | 7,888,781 | |
| | | | | | | | |
Short-Term Floating Rate Note – 0.06%≠ | | | | | |
Royal Bank of Canada (New York) 2.93% (LIBOR03M + 0.17%) 4/18/19 | | | 310,000 | | | | 310,026 | |
| | | | | | | | |
| | | | | | | 310,026 | |
| | | | | | | | |
| |
Total Securities Lending Collateral
(cost $8,258,781) | | | | 8,258,807 | |
| | | | | | | | |
104
| | | | |
Total Value of
Securities – 100.71%
(cost $516,648,054) | | $ | 557,913,355⬛ | |
| | | | |
| * | Fully or partially on loan. |
| = | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the disclosure table located in Note 3 in “Notes to financial statements.” |
| ≠ | The rate shown is the effective yield at the time of purchase. |
| ⬛ | Includes $9,242,284 of securities loaned. |
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| D | Securities have been classified by country of origin. Aggregate classification by business sector has been presented on page 4 in “Security type / country and sector allocations.” |
| p | Restricted security. These investments are in securities not registered under the Securities Act of 1933, as amended, and have certain restrictions on resale which may limit their liquidity. At March 31, 2019, the aggregate value of restricted securities was $444,408, which represented 0.08% of the Fund’s net assets. See the table below for additional details on restricted securities. |
| † | Non-income producing security. |
Restricted Securities
| | | | | | | | | | | | |
Investment | | Date of Acquisition | | | Cost | | | Value | |
Project Star | | | 5/7/14 | | | $ | 999,482 | | | $ | 333,894 | |
Project Star Series G | | | 10/29/14 | | | | 396,443 | | | | 110,514 | |
| | | | | | | | | | | | |
Total | | | | | | $ | 1,395,925 | | | $ | 444,408 | |
| | | | | | | | | | | | |
The following foreign currency exchange contracts were outstanding at March 31, 2019:1
Foreign Currency Exchange Contracts
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Counterparty | | Contracts to
Receive (Deliver) | | | In Exchange For | | | Settlement
Date | | | Unrealized
Appreciation | | | Unrealized
Depreciation | |
BBH | | BRL | | | (9,956,380) | | | | USD | | | | 2,506,004 | | | | 4/1/19 | | | $ | — | | | $ | (36,321 | ) |
BBH | | BRL | | | (350,112) | | | | USD | | | | 90,315 | | | | 4/2/19 | | | | 922 | | | | — | |
BBH | | HKD | | | (3,523,753) | | | | USD | | | | 448,896 | | | | 4/2/19 | | | | — | | | | (44 | ) |
BBH | | JPY | | | 34,703,510 | | | | USD | | | | (314,387) | | | | 4/1/19 | | | | — | | | | (1,191 | ) |
BNYM | | CAD | | | (853,955) | | | | USD | | | | 635,477 | | | | 4/2/19 | | | | — | | | | (3,609 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Foreign Currency Exchange Contracts | | | | | | | | | | | | | | | $ | 922 | | | $ | (41,165 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
The use of foreign currency exchange contracts involves elements of market risk and risks in excess of the amounts disclosed in the financial statements. The foreign currency exchange contracts presented above represent the Fund’s total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) is reflected in the Fund’s net assets.
1See Note 7 in “Notes to financial statements.”
Summary of abbreviations:
ADR – American Depositary Receipt
BBH – Brown Brothers Harriman & Co.
BNYM – Bank of New York Mellon
BRL – Brazilian Real
CAD – Canadian Dollar
CVA – Dutch Certificate
GDR – Global Depositary Receipt
HKD – Hong Kong Dollar
ICE – Intercontinental Exchange
JPY – Japanese Yen
LIBOR – London Interbank Offered Rate
LIBOR03M – ICE LIBOR USD 3 Month
NVDR –Non-Voting Depositary Receipt
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
Schedules of investments
Optimum Large Cap Growth Fund
March 31, 2019
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common Stock – 97.11%² | |
| |
Communication Services – 15.34% | |
Alphabet Class A † | | | 30,892 | | | $ | 36,356,486 | |
Alphabet Class C † | | | 43,120 | | | | 50,593,127 | |
Comcast Class A | | | 401,430 | | | | 16,049,171 | |
Electronic Arts † | | | 72,323 | | | | 7,350,186 | |
Facebook Class A † | | | 479,744 | | | | 79,968,527 | |
IAC/InterActiveCorp † | | | 25,161 | | | | 5,286,578 | |
Netflix † | | | 39,769 | | | | 14,180,035 | |
Tencent Holdings (China) (Hong Kong Exchange) | | | 410,900 | | | | 18,896,386 | |
Walt Disney | | | 256,743 | | | | 28,506,175 | |
| | | | | | | | |
| | | | | | | 257,186,671 | |
| | | | | | | | |
Consumer Discretionary – 17.18% | |
Advance Auto Parts | | | 31,380 | | | | 5,351,231 | |
Alibaba Group Holding ADR † | | | 181,762 | | | | 33,162,477 | |
Amazon.com † | | | 69,720 | | | | 124,153,890 | |
Aptiv | | | 106,481 | | | | 8,464,175 | |
Booking Holdings † | | | 6,259 | | | | 10,921,392 | |
Chipotle Mexican Grill † | | | 17,030 | | | | 12,096,579 | |
Dollar General | | | 25,500 | | | | 3,042,150 | |
Dollar Tree † | | | 68,290 | | | | 7,173,182 | |
Dollarama | | | 170,377 | | | | 4,545,172 | |
Ferrari (Italy) | | | 53,103 | | | | 7,105,181 | |
GrubHub † | | | 117,320 | | | | 8,150,220 | |
Home Depot | | | 78,190 | | | | 15,003,879 | |
Las Vegas Sands | | | 100,800 | | | | 6,144,768 | |
McDonald’s | | | 30,000 | | | | 5,697,000 | |
MercadoLibre † | | | 4,413 | | | | 2,240,612 | |
MGM Resorts International | | | 160,800 | | | | 4,126,128 | |
NIKE Class B | | | 114,264 | | | | 9,622,171 | |
NVR † | | | 1,210 | | | | 3,348,070 | |
Wynn Resorts | | | 64,091 | | | | 7,647,338 | |
Yum China Holdings | | | 220,525 | | | | 9,903,778 | |
| | | | | | | | |
| | | | | | | 287,899,393 | |
| | | | | | | | |
Consumer Staples – 3.45% | |
Anheuser-Busch InBev ADR | | | 181,650 | | | | 15,253,151 | |
Coca-Cola | | | 212,020 | | | | 9,935,257 | |
Costco Wholesale | | | 57,448 | | | | 13,910,459 | |
McCormick & Co. | | | 54,123 | | | | 8,152,548 | |
Philip Morris International | | | 120,054 | | | | 10,611,573 | |
| | | | | | | | |
| | | | | | | 57,862,988 | |
| | | | | | | | |
Energy – 0.84% | | | | | | | | |
Pioneer Natural Resources | | | 42,864 | | | | 6,527,330 | |
Schlumberger | | | 173,280 | | | | 7,549,810 | |
| | | | | | | | |
| | | | | | | 14,077,140 | |
| | | | | | | | |
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common Stock²(continued) | |
| |
Financials – 4.59% | | | | | | | | |
American Express | | | 118,870 | | | $ | 12,992,491 | |
BlackRock | | | 27,960 | | | | 11,949,265 | |
Charles Schwab | | | 579,473 | | | | 24,778,265 | |
Chubb (Switzerland) | | | 43,000 | | | | 6,023,440 | |
Intercontinental Exchange | | | 71,222 | | | | 5,422,843 | |
Morgan Stanley | | | 109,900 | | | | 4,637,780 | |
S&P Global | | | 6,600 | | | | 1,389,630 | |
TD Ameritrade Holding | | | 194,523 | | | | 9,724,205 | |
WeWork Companies =p† | | | 881 | | | | 45,195 | |
| | | | | | | | |
| | | | | | | 76,963,114 | |
| | | | | | | | |
Healthcare – 13.83% | | | | | | | | |
Alexion Pharmaceuticals † | | | 133,558 | | | | 18,054,370 | |
Anthem | | | 40,700 | | | | 11,680,086 | |
Becton Dickinson and Co. | | | 64,413 | | | | 16,085,859 | |
Biogen † | | | 47,480 | | | | 11,223,322 | |
BioMarin
Pharmaceutical † | | | 91,550 | | | | 8,132,387 | |
Centene † | | | 111,546 | | | | 5,923,093 | |
Cigna | | | 57,576 | | | | 9,259,372 | |
Elanco Animal Health † | | | 11,289 | | | | 362,038 | |
Eli Lilly & Co. | | | 15,898 | | | | 2,062,924 | |
HCA Healthcare | | | 31,677 | | | | 4,130,047 | |
Humana | | | 9,900 | | | | 2,633,400 | |
Intuitive Surgical † | | | 24,623 | | | | 14,049,391 | |
Johnson & Johnson | | | 76,870 | | | | 10,745,657 | |
Regeneron Pharmaceuticals † | | | 4,970 | | | | 2,040,781 | |
Stryker | | | 88,077 | | | | 17,396,969 | |
Thermo Fisher Scientific | | | 66,880 | | | | 18,306,394 | |
UnitedHealth Group | | | 171,146 | | | | 42,317,560 | |
Vertex Pharmaceuticals † | | | 72,794 | | | | 13,390,456 | |
WellCare Health Plans † | | | 20,984 | | | | 5,660,434 | |
Zoetis | | | 181,560 | | | | 18,277,645 | |
| | | | | | | | |
| | | | | | | 231,732,185 | |
| | | | | | | | |
Industrials – 8.88% | | | | | | | | |
Boeing | | | 87,378 | | | | 33,327,717 | |
Caterpillar | | | 71,310 | | | | 9,661,792 | |
Equifax | | | 34,173 | | | | 4,049,501 | |
Fortive | | | 104,613 | | | | 8,775,985 | |
Honeywell International | | | 139,910 | | | | 22,234,497 | |
IHS Markit (United Kingdom) † | | | 220,696 | | | | 12,001,448 | |
Northrop Grumman | | | 26,000 | | | | 7,009,600 | |
Roper Technologies | | | 31,515 | | | | 10,777,185 | |
TransUnion | | | 117,131 | | | | 7,829,036 | |
United Parcel Service Class B | | | 105,240 | | | | 11,759,518 | |
Wabtec | | | 68,405 | | | | 5,042,817 | |
106
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common Stock²(continued) | |
| |
Industrials (continued) | | | | | |
WW Grainger | | | 54,220 | | | $ | 16,316,425 | |
| | | | | | | | |
| | | | | | | 148,785,521 | |
| | | | | | | | |
Information Technology – 29.14% | |
Adobe † | | | 83,620 | | | | 22,283,894 | |
Akamai Technologies † | | | 213,890 | | | | 15,338,052 | |
Apple | | | 133,771 | | | | 25,409,801 | |
ASML Holding (Netherlands) | | | 37,000 | | | | 6,957,850 | |
Fidelity National Information Services | | | 60,300 | | | | 6,819,930 | |
Fiserv † | | | 85,688 | | | | 7,564,537 | |
Intuit | | | 50,505 | | | | 13,202,512 | |
Mastercard Class A | | | 109,597 | | | | 25,804,614 | |
Microsoft | | | 685,307 | | | | 80,825,108 | |
Nutanix Class A † | | | 238,210 | | | | 8,990,045 | |
NVIDIA | | | 98,790 | | | | 17,738,732 | |
Oracle | | | 324,520 | | | | 17,429,969 | |
Palo Alto Networks † | | | 61,400 | | | | 14,912,832 | |
PayPal Holdings † | | | 259,402 | | | | 26,936,304 | |
QUALCOMM | | | 217,500 | | | | 12,404,025 | |
Red Hat † | | | 115,107 | | | | 21,030,049 | |
salesforce.com † | | | 70,700 | | | | 11,196,759 | |
ServiceNow † | | | 21,374 | | | | 5,268,477 | |
Splunk † | | | 161,370 | | | | 20,106,702 | |
Symantec | | | 491,526 | | | | 11,300,183 | |
Texas Instruments | | | 120,640 | | | | 12,796,285 | |
Visa Class A | | | 397,207 | | | | 62,039,761 | |
VMware Class A | | | 105,529 | | | | 19,049,040 | |
Workday Class A † | | | 45,568 | | | | 8,787,789 | |
Worldpay Class A † | | | 126,194 | | | | 14,323,019 | |
| | | | | | | | |
| | | | | | | 488,516,269 | |
| | | | | | | | |
Materials – 1.95% | | | | | | | | |
DowDuPont | | | 98,800 | | | | 5,267,028 | |
Ecolab | | | 83,670 | | | | 14,771,102 | |
Linde | | | 71,760 | | | | 12,624,737 | |
| | | | | | | | |
| | | | | | | 32,662,867 | |
| | | | | | | | |
Real Estate – 1.11% | | | | | |
Crown Castle International | | | 31,840 | | | | 4,075,520 | |
Equinix | | | 31,980 | | | | 14,492,057 | |
| | | | | | | | |
| | | | | | | 18,567,577 | |
| | | | | | | | |
Utilities – 0.80% | | | | | | | | |
NextEra Energy | | | 30,207 | | | | 5,839,617 | |
Sempra Energy | | | 59,969 | | | | 7,547,698 | |
| | | | | | | | |
| | | | | | | 13,387,315 | |
| | | | | | | | |
| |
Total Common Stock
(cost $1,219,370,940) | | | | 1,627,641,040 | |
| | | | | | | | |
| | | | | | | | |
| | | Number of shares | | | Value (US $) | |
| |
Convertible Preferred Stock – 0.57% | |
| |
Airbnb Private Placement | | | | | | | | |
Series D =p† | | | 23,130 | | | $ | 2,684,005 | |
Series E =p† | | | 13,611 | | | | 1,579,420 | |
Magic Leap =p† | | | 43,435 | | | | 1,114,108 | |
Uber Technologies
Series G =p† | | | 34,197 | | | | 1,584,471 | |
WeWork Companies Series E =p† | | | 22,244 | | | | 1,141,117 | |
Xiaoju Kuaizhi (China) =p† | | | 32,416 | | | | 1,477,862 | |
| | | | | | | | |
| | |
Total Convertible Preferred Stock(cost $6,497,746) | | | | | | | 9,580,983 | |
| | | | | | | | |
| | | | | | | | |
| |
Short-Term Investments – 2.48% | |
| |
Money Market Mutual Funds – 2.48% | |
BlackRock FedFund - Institutional Shares(seven-day effective yield 2.36%) | | | 8,312,187 | | | | 8,312,187 | |
Fidelity Investments Money Market Government Portfolio - Class I(seven-day effective yield 2.31%) | | | 8,312,187 | | | | 8,312,187 | |
GS Financial Square Government Fund - Institutional Shares(seven-day effective yield 2.32%) | | | 8,312,187 | | | | 8,312,187 | |
Morgan Stanley Government Portfolio - Institutional Share Class(seven-day effective yield 2.33%) | | | 8,312,186 | | | | 8,312,186 | |
State Street Institutional US Government Money Market Fund - Investor Class(seven-day effective yield 2.31%) | | | 8,312,186 | | | | 8,312,186 | |
| | | | | | | | |
| | |
Total Short-Term Investments
(cost $41,560,933) | | | | | | | 41,560,933 | |
| | | | | | | | |
| |
Total Value of
Securities – 100.16%
(cost $1,267,429,619) | | | $ | 1,678,782,956 | |
| | | | | | | | |
| ² | Narrow industries are utilized for compliance purposes for diversification whereas broad sectors are used for financial reporting. |
| = | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the disclosure table located in Note 3 in “Notes to financial statements.” |
Schedules of investments
Optimum Large Cap Growth Fund
| p | Restricted security. These investments are in securities not registered under the Securities Act of 1933, as amended, and have certain restrictions on resale which may limit their liquidity. At March 31, 2019, the aggregate value of restricted securities was $9,626,178, which represented 0.57% of the Fund’s net assets. See Note 10 in “Notes to financial statements” and the following table, for additional details on restricted securities. |
| † | Non-income producing security. |
| | | | | | | | | | | | |
Restricted securities | | | | | | | |
Investment | | Date of Acquisition | | | Cost | | | Value | |
| Airbnb Private Placement Series D | | | 4/16/14 | | | $ | 941,693 | | | $ | 2,684,005 | |
| Airbnb Private Placement Series E | | | 7/14/15 | | | | 1,267,108 | | | | 1,579,420 | |
| Magic Leap | | | 1/20/16 | | | | 1,000,438 | | | | 1,114,108 | |
| Uber Technologies Series G | | | 12/3/15 | | | | 1,667,863 | | | | 1,584,471 | |
| WeWork Companies | | | 6/23/15 | | | | 28,976 | | | | 45,195 | |
| WeWork Companies Series E | | | 6/23/15 | | | | 731,596 | | | | 1,141,117 | |
| Xiaoju Kuaizhi (China) | | | 10/19/15 | | | | 889,048 | | | | 1,477,862 | |
| | | | | | | | | | | | |
Total | | | | | | $ | 6,526,722 | | | $ | 9,626,178 | |
| | | | | | | | | | | | |
Summary of abbreviations:
ADR – American Depositary Receipt
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
108
Optimum Large Cap Value Fund
March 31, 2019
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common Stock – 98.23% | | | | | | | | |
| |
Communication Services – 7.39% | |
Alphabet Class A † | | | 8,305 | | | $ | 9,774,071 | |
AT&T | | | 518,479 | | | | 16,259,501 | |
Comcast Class A | | | 1,039,265 | | | | 41,549,815 | |
Omnicom Group | | | 125,631 | | | | 9,169,807 | |
Verizon Communications | | | 486,023 | | | | 28,738,540 | |
Walt Disney | | | 92,671 | | | | 10,289,261 | |
| | | | | | | | |
| | | | | | | 115,780,995 | |
| | | | | | | | |
Consumer Discretionary – 2.15% | | | | | |
Aptiv | | | 82,072 | | | | 6,523,903 | |
BorgWarner | | | 95,431 | | | | 3,665,505 | |
Hanesbrands | | | 87,124 | | | | 1,557,777 | |
Harley-Davidson | | | 24,571 | | | | 876,202 | |
Lear | | | 11,331 | | | | 1,537,730 | |
PVH | | | 67,290 | | | | 8,206,015 | |
Royal Caribbean Cruises | | | 99,479 | | | | 11,402,283 | |
| | | | | | | | |
| | | | | | | 33,769,415 | |
| | | | | | | | |
Consumer Staples – 7.40% | | | | | |
Altria Group | | | 81,130 | | | | 4,659,296 | |
Archer-Daniels-Midland | | | 96,157 | | | | 4,147,251 | |
Colgate-Palmolive | | | 23,617 | | | | 1,618,709 | |
Danone (France) | | | 46,234 | | | | 3,560,062 | |
Diageo (United Kingdom) | | | 255,354 | | | | 10,449,612 | |
General Mills | | | 145,172 | | | | 7,512,651 | |
JM Smucker | | | 27,648 | | | | 3,220,992 | |
Kimberly-Clark | | | 21,348 | | | | 2,645,017 | |
Nestle (Switzerland) | | | 136,028 | | | | 12,970,326 | |
PepsiCo | | | 133,943 | | | | 16,414,715 | |
Philip Morris International | | | 155,032 | | | | 13,703,278 | |
Procter & Gamble | | | 190,201 | | | | 19,790,414 | |
Reckitt Benckiser Group (United Kingdom) | | | 45,943 | | | | 3,823,498 | |
Tyson Foods Class A | | | 165,906 | | | | 11,518,854 | |
| | | | | | | | |
| | | | | | | 116,034,675 | |
| | | | | | | | |
Energy – 7.13% | | | | | | | | |
Chevron | | | 224,873 | | | | 27,699,856 | |
ConocoPhillips | | | 180,864 | | | | 12,070,863 | |
Diamondback Energy | | | 82,506 | | | | 8,376,834 | |
EOG Resources | | | 163,584 | | | | 15,569,925 | |
Exxon Mobil | | | 74,413 | | | | 6,012,570 | |
Helmerich & Payne | | | 114,587 | | | | 6,366,454 | |
Marathon Petroleum | | | 200,286 | | | | 11,987,117 | |
Occidental Petroleum | | | 59,214 | | | | 3,919,967 | |
Phillips 66 | | | 90,215 | | | | 8,585,762 | |
Pioneer Natural Resources | | | 11,781 | | | | 1,794,011 | |
Schlumberger | | | 216,252 | | | | 9,422,100 | |
| | | | | | | | |
| | | | | | | 111,805,459 | |
| | | | | | | | |
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common Stock(continued) | |
| |
Financials – 24.34% | | | | | | | | |
Allstate | | | 80,176 | | | $ | 7,550,976 | |
American Express | | | 147,536 | | | | 16,125,685 | |
Aon (United Kingdom) | | | 99,068 | | | | 16,910,908 | |
Bank of America | | | 892,270 | | | | 24,617,729 | |
Bank of New York Mellon | | | 151,274 | | | | 7,628,748 | |
BB&T | | | 186,627 | | | | 8,683,754 | |
Berkshire Hathaway Class B † | | | 46,840 | | | | 9,409,688 | |
BlackRock | | | 16,853 | | | | 7,202,467 | |
Charles Schwab | | | 93,285 | | | | 3,988,867 | |
Chubb (Switzerland) | | | 109,459 | | | | 15,333,017 | |
Citigroup | | | 247,125 | | | | 15,376,117 | |
Discover Financial Services | | | 154,662 | | | | 11,005,748 | |
E*TRADE Financial | | | 178,271 | | | | 8,277,123 | |
Goldman Sachs Group | | | 63,909 | | | | 12,269,889 | |
Hartford Financial Services Group | | | 185,613 | | | | 9,228,678 | |
Intercontinental Exchange | | | 124,574 | | | | 9,485,064 | |
JPMorgan Chase & Co. | | | 603,842 | | | | 61,126,926 | |
MetLife | | | 135,847 | | | | 5,783,007 | |
Moody’s | | | 32,360 | | | | 5,860,072 | |
Morgan Stanley | | | 155,229 | | | | 6,550,664 | |
Nasdaq | | | 96,368 | | | | 8,431,236 | |
PNC Financial Services Group | | | 80,747 | | | | 9,904,427 | |
Prudential Financial | | | 102,950 | | | | 9,459,046 | |
State Street | | | 231,121 | | | | 15,210,073 | |
SunTrust Banks | | | 162,676 | | | | 9,638,553 | |
T Rowe Price Group | | | 35,301 | | | | 3,534,336 | |
Travelers | | | 167,563 | | | | 22,982,941 | |
US Bancorp | | | 323,006 | | | | 15,565,659 | |
Wells Fargo & Co. | | | 506,659 | | | | 24,481,763 | |
| | | | | | | | |
| | | | | | | 381,623,161 | |
| | | | | | | | |
Healthcare – 16.25% | | | | | | | | |
Abbott Laboratories | | | 131,323 | | | | 10,497,961 | |
Allergan | | | 41,169 | | | | 6,027,553 | |
Biogen † | | | 26,649 | | | | 6,299,291 | |
Cigna | | | 111,793 | | | | 17,978,550 | |
Danaher | | | 160,070 | | | | 21,132,441 | |
Eli Lilly & Co. | | | 66,391 | | | | 8,614,896 | |
Gilead Sciences | | | 121,192 | | | | 7,878,692 | |
Hill-Rom Holdings | | | 53,519 | | | | 5,665,521 | |
Johnson & Johnson | | | 201,893 | | | | 28,222,622 | |
McKesson | | | 42,245 | | | | 4,945,200 | |
Medtronic (Ireland) | | | 397,914 | | | | 36,242,007 | |
Merck & Co. | | | 322,213 | | | | 26,798,455 | |
Novartis (Switzerland) | | | 21,073 | | | | 2,025,527 | |
Pfizer | | | 984,545 | | | | 41,813,626 | |
Roche Holding (Switzerland) | | | 12,366 | | | | 3,407,512 | |
Schedules of investments
Optimum Large Cap Value Fund
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common Stock(continued) | | | | | |
| |
Healthcare (continued) | | | | | | | | |
Thermo Fisher Scientific | | | 76,440 | | | $ | 20,923,157 | |
UnitedHealth Group | | | 25,555 | | | | 6,318,729 | |
| | | | | | | | |
| | | | | | | 254,791,740 | |
| | | | | | | | |
Industrials – 13.77% | | | | | | | | |
3M | | | 42,416 | | | | 8,813,196 | |
Boeing | | | 20,948 | | | | 7,989,986 | |
Canadian National Railway (Canada) | | | 53,011 | | | | 4,743,424 | |
Caterpillar | | | 54,848 | | | | 7,431,356 | |
Delta Air Lines | | | 208,000 | | | | 10,743,200 | |
Eaton | | | 111,606 | | | | 8,990,979 | |
Equifax | | | 52,812 | | | | 6,258,222 | |
HD Supply Holdings † | | | 37,787 | | | | 1,638,066 | |
Honeywell International | | | 149,291 | | | | 23,725,326 | |
Illinois Tool Works | | | 76,990 | | | | 11,050,375 | |
Ingersoll-Rand | | | 182,115 | | | | 19,659,314 | |
Johnson Controls International | | | 370,781 | | | | 13,696,650 | |
Lockheed Martin | | | 22,017 | | | | 6,608,623 | |
Northrop Grumman | | | 47,363 | | | | 12,769,065 | |
Owens Corning | | | 105,340 | | | | 4,963,621 | |
Parker-Hannifin | | | 52,525 | | | | 9,014,341 | |
Raytheon | | | 61,944 | | | | 11,278,764 | |
Stanley Black & Decker | | | 60,773 | | | | 8,275,459 | |
Union Pacific | | | 58,791 | | | | 9,829,855 | |
United Parcel Service Class B | | | 39,064 | | | | 4,365,011 | |
United Technologies | | | 70,976 | | | | 9,148,097 | |
Waste Management | | | 144,118 | | | | 14,975,301 | |
| | | | | | | | |
| | | | | | | 215,968,231 | |
| | | | | | | | |
Information Technology – 9.74% | |
Accenture Class A (Ireland) | | | 140,875 | | | | 24,796,817 | |
Amdocs | | | 28,475 | | | | 1,540,782 | |
Analog Devices | | | 56,515 | | | | 5,949,334 | |
Broadcom | | | 46,623 | | | | 14,020,002 | |
Cisco Systems | | | 514,125 | | | | 27,757,609 | |
Cognizant Technology Solutions Class A | | | 54,351 | | | | 3,937,730 | |
DXC Technology | | | 48,033 | | | | 3,089,002 | |
Fidelity National Information Services | | | 83,574 | | | | 9,452,219 | |
Fiserv † | | | 114,451 | | | | 10,103,734 | |
Intel | | | 139,684 | | | | 7,501,031 | |
Microsoft | | | 138,344 | | | | 16,316,291 | |
Oracle | | | 251,644 | | | | 13,515,799 | |
Texas Instruments | | | 139,347 | | | | 14,780,536 | |
| | | | | | | | |
| | | | | | | 152,760,886 | |
| | | | | | | | |
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common Stock(continued) | | | | | |
| |
Materials – 2.56% | | | | | | | | |
Air Products & Chemicals | | | 59,701 | | | $ | 11,400,503 | |
DowDuPont | | | 44,581 | | | | 2,376,613 | |
Nucor | | | 77,190 | | | | 4,504,037 | |
PPG Industries | | | 130,216 | | | | 14,697,480 | |
Sherwin-Williams | | | 16,621 | | | | 7,158,831 | |
| | | | | | | | |
| | | | | | | 40,137,464 | |
| | | | | | | | |
Real Estate – 2.71% | | | | | | | | |
Alexandria Real Estate Equities | | | 60,593 | | | | 8,638,138 | |
AvalonBay Communities | | | 28,927 | | | | 5,806,517 | |
Equity LifeStyle Properties | | | 65,702 | | | | 7,509,739 | |
Highwoods Properties | | | 99,647 | | | | 4,661,487 | |
Prologis | | | 177,807 | | | | 12,793,214 | |
Public Storage | | | 13,753 | | | | 2,995,128 | |
| | | | | | | | |
| | | | | | | 42,404,223 | |
| | | | | | | | |
Utilities – 4.79% | | | | | | | | |
American Electric Power | | | 148,493 | | | | 12,436,289 | |
DTE Energy | | | 90,245 | | | | 11,257,161 | |
Duke Energy | | | 156,564 | | | | 14,090,760 | |
Firstenergy | | | 141,928 | | | | 5,905,624 | |
Southern | | | 215,959 | | | | 11,160,761 | |
Xcel Energy | | | 358,807 | | | | 20,168,541 | |
| | | | | | | | |
| | | | | | | 75,019,136 | |
| | | | | | | | |
Total Common Stock
(cost $1,265,390,790) | | | | | | | 1,540,095,385 | |
| | | | | | | | |
|
| |
Short-Term Investments – 1.49% | | | | | |
| |
Money Market Mutual Fund – 1.49%≠ | |
BlackRock FedFund - Institutional Shares(seven-day effective yield 2.36%) | | | 4,671,206 | | | | 4,671,206 | |
Fidelity Investments Money Market Government Portfolio - Class I(seven-day effective yield 2.31%) | | | 4,671,206 | | | | 4,671,206 | |
GS Financial Square Government Fund - Institutional Shares(seven-day effective yield 2.32%) | | | 4,671,206 | | | | 4,671,206 | |
Morgan Stanley Government Portfolio - Institutional Share Class(seven-day effective yield 2.33%) | | | 4,671,206 | | | | 4,671,206 | |
110
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Short-Term Investments(continued) | | | | | |
| |
Money Market Mutual Fund≠ (continued) | |
State Street Institutional US Government Money Market Fund - Investor Class(seven-day effective yield 2.31%) | | | 4,671,206 | | | $ | 4,671,206 | |
| | | | | | | | |
| | | | | | | 23,356,030 | |
| | | | | | | | |
| | |
Total Short-Term Investments
(cost $23,356,030) | | | | | | | 23,356,030 | |
| | | | | | | | |
Total Value of Securities Before Security Sold Short – 99.72%
(cost $1,288,746,820) | | | | | | | 1,563,451,415 | |
| | | | | | | | |
| | |
| | | Principal
amount° | | | | |
| |
Security Sold Short – (0.03%) | | | | | |
| |
Dow † | | | (8,032 | ) | | | (414,692 | ) |
| | | | | | | | |
Total Security Sold Short
(proceeds $397,035) | | | | | | | (414,692 | ) |
| | | | | | | | |
| ≠ | The rate shown is the effective yield at the time of purchase. |
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| † | Non-income producing security. |
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
Schedules of investments
OptimumSmall-Mid Cap Growth Fund
March 31, 2019
| | | | | | | | |
| | | Number of | | | Value | |
| | | shares | | | (US $) | |
| |
Common Stock – 97.85%² | |
| |
Communication Services – 3.22% | |
Glu Mobile † | | | 364,331 | | | $ | 3,985,781 | |
IAC/InterActiveCorp † | | | 37,985 | | | | 7,981,028 | |
Lions Gate Entertainment Class B | | | 80,650 | | | | 1,217,815 | |
Madison Square Garden Class A † | | | 4,715 | | | | 1,382,108 | |
Zynga Class A † | | | 367,549 | | | | 1,959,036 | |
| | | | | | | | |
| | | | | | | 16,525,768 | |
| | | | | | | | |
Consumer Discretionary – 13.59% | |
Advance Auto Parts | | | 24,888 | | | | 4,244,151 | |
At Home Group † | | | 71,975 | | | | 1,285,473 | |
Boot Barn Holdings † | | | 87,900 | | | | 2,587,776 | |
Burlington Stores † | | | 13,091 | | | | 2,051,098 | |
Callaway Golf | | | 66,990 | | | | 1,067,151 | |
Chegg † | | | 190,933 | | | | 7,278,366 | |
Children’s Place | | | 15,446 | | | | 1,502,587 | |
Dave & Buster’s Entertainment | | | 38,194 | | | | 1,904,735 | |
Eldorado Resorts † | | | 60,119 | | | | 2,806,956 | |
Extended Stay America | | | 170,386 | | | | 3,058,429 | |
Five Below † | | | 36,131 | | | | 4,489,277 | |
Fox Factory Holding † | | | 31,959 | | | | 2,233,614 | |
G-III Apparel Group † | | | 153,107 | | | | 6,118,156 | |
Houghton Mifflin
Harcourt † | | | 140,791 | | | | 1,023,550 | |
International Game Technology † | | | 157,798 | | | | 2,049,796 | |
iRobot † | | | 43,640 | | | | 5,135,992 | |
LKQ † | | | 96,438 | | | | 2,736,910 | |
Lululemon Athletica (Canada) † | | | 18,389 | | | | 3,013,405 | |
Media General
CVR =† | | | 49,291 | | | | 0 | |
Monro | | | 22,633 | | | | 1,958,207 | |
Strategic Education | | | 47,245 | | | | 6,203,741 | |
Ulta Beauty † | | | 19,903 | | | | 6,940,773 | |
| | | | | | | | |
| | | | | | | 69,690,143 | |
| | | | | | | | |
Consumer Staples – 3.11% | |
Central Garden & Pet Class A † | | | 68,091 | | | | 1,583,116 | |
Church & Dwight | | | 26,500 | | | | 1,887,595 | |
Energizer Holdings | | | 31,728 | | | | 1,425,539 | |
Freshpet † | | | 34,057 | | | | 1,440,270 | |
Inter Parfums | | | 49,003 | | | | 3,717,858 | |
MGP Ingredients | | | 18,242 | | | | 1,407,370 | |
Performance Food
Group † | | | 77,930 | | | | 3,089,145 | |
TreeHouse Foods † | | | 21,265 | | | | 1,372,656 | |
| | | | | | | | |
| | | | | | | 15,923,549 | |
| | | | | | | | |
| | | | | | | | |
| | | Number of | | | Value | |
| | | shares | | | (US $) | |
| |
Common Stock² (continued) | |
| |
Energy – 1.66% | | | | | | | | |
Berry Petroleum | | | 62,605 | | | $ | 722,462 | |
Callon Petroleum † | | | 274,538 | | | | 2,072,762 | |
Diamondback Energy | | | 24,741 | | | | 2,511,954 | |
GasLog (Monaco) | | | 87,710 | | | | 1,531,417 | |
Parsley Energy Class A † | | | 87,532 | | | | 1,689,368 | |
| | | | | | | | |
| | | | | | | 8,527,963 | |
| | | | | | | | |
Financials – 6.83% | | | | | | | | |
Argo Group International Holdings (Bermuda) | | | 44,653 | | | | 3,155,181 | |
Essent Group † | | | 68,290 | | | | 2,967,201 | |
Evercore Class A | | | 32,864 | | | | 2,990,624 | |
FirstCash | | | 19,906 | | | | 1,721,869 | |
Focus Financial Partners Class A † | | | 17,608 | | | | 627,549 | |
Green Dot Class A † | | | 47,094 | | | | 2,856,251 | |
MSCI Class A | | | 9,688 | | | | 1,926,362 | |
ServisFirst Bancshares | | | 50,576 | | | | 1,707,446 | |
Signature Bank | | | 39,870 | | | | 5,106,151 | |
Stifel Financial | | | 46,258 | | | | 2,440,572 | |
SVB Financial
Group † | | | 24,833 | | | | 5,521,866 | |
Triumph Bancorp † | | | 39,697 | | | | 1,166,695 | |
Virtu Financial Class A | | | 57,523 | | | | 1,366,171 | |
Virtus Investment Partners | | | 15,032 | | | | 1,466,372 | |
| | | | | | | | |
| | | | | | | 35,020,310 | |
| | | | | | | | |
Healthcare – 20.55% | | | | | | | | |
ABIOMED † | | | 3,965 | | | | 1,132,364 | |
ACADIA Pharmaceuticals † | | | 49,660 | | | | 1,333,371 | |
Allscripts Healthcare Solutions † | | | 123,119 | | | | 1,174,555 | |
Alnylam Pharmaceuticals † | | | 17,073 | | | | 1,595,472 | |
Amedisys † | | | 19,735 | | | | 2,432,536 | |
AMN Healthcare
Services † | | | 35,419 | | | | 1,667,881 | |
Array BioPharma † | | | 334,943 | | | | 8,165,910 | |
AtriCure † | | | 72,843 | | | | 1,951,464 | |
Axogen † | | | 43,487 | | | | 915,836 | |
CareDx † | | | 45,144 | | | | 1,422,939 | |
Cerus † | | | 177,169 | | | | 1,103,763 | |
DexCom † | | | 83,306 | | | | 9,921,745 | |
Emergent Bio
Solutions † | | | 27,286 | | | | 1,378,489 | |
Evolent Health
Class A † | | | 105,229 | | | | 1,323,781 | |
Exact Sciences † | | | 35,397 | | | | 3,066,088 | |
Flexion Therapeutics † | | | 69,379 | | | | 865,850 | |
Galapagos ADR † | | | 7,870 | | | | 926,929 | |
Glaukos † | | | 18,659 | | | | 1,462,306 | |
HealthEquity † | | | 21,307 | | | | 1,576,292 | |
Horizon Pharma † | | | 96,636 | | | | 2,554,089 | |
ICON (Ireland) † | | | 22,501 | | | | 3,073,186 | |
112
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common Stock²(continued) | |
| |
Healthcare (continued) | | | | | | | | |
Inogen † | | | 19,062 | | | $ | 1,817,943 | |
Inspire Medical
Systems † | | | 47,830 | | | | 2,715,787 | |
Intercept Pharmaceuticals † | | | 10,285 | | | | 1,150,480 | |
Intra-Cellular
Therapies † | | | 74,816 | | | | 911,259 | |
Invitae † | | | 59,045 | | | | 1,382,834 | |
Ionis Pharmaceuticals † | | | 17,526 | | | | 1,422,585 | |
Iovance Biotherapeutics † | | | 77,210 | | | | 734,267 | |
Madrigal Pharmaceuticals † | | | 12,100 | | | | 1,515,646 | |
Medidata Solutions † | | | 23,247 | | | | 1,702,610 | |
Merit Medical
Systems † | | | 36,488 | | | | 2,256,053 | |
Molina Healthcare † | | | 30,852 | | | | 4,379,750 | |
Novocure † | | | 20,627 | | | | 993,603 | |
Nuvectra † | | | 59,899 | | | | 659,488 | |
Pacira Pharmaceuticals † | | | 22,112 | | | | 841,583 | |
PetIQ † | | | 54,909 | | | | 1,724,692 | |
Portola Pharmaceuticals † | | | 39,356 | | | | 1,365,653 | |
Sage Therapeutics † | | | 18,572 | | | | 2,953,877 | |
Sarepta Therapeutics † | | | 18,280 | | | | 2,178,793 | |
Syneos Health † | | | 58,917 | | | | 3,049,544 | |
Tabula Rasa
HealthCare † | | | 25,426 | | | | 1,434,535 | |
Tactile Systems Technology † | | | 38,776 | | | | 2,044,271 | |
Tandem Diabetes Care † | | | 114,081 | | | | 7,244,143 | |
Teladoc Health † | | | 30,922 | | | | 1,719,263 | |
Viking Therapeutics † | | | 72,206 | | | | 717,728 | |
Vocera Communications † | | | 30,343 | | | | 959,749 | |
Wright Medical Group (Netherlands) † | | | 268,471 | | | | 8,443,413 | |
| | | | | | | | |
| | | | | | | 105,364,395 | |
| | | | | | | | |
Industrials – 13.64% | | | | | | | | |
AAR | | | 36,267 | | | | 1,179,040 | |
AGCO | | | 26,630 | | | | 1,852,117 | |
AO Smith | | | 46,252 | | | | 2,466,157 | |
ASGN † | | | 47,340 | | | | 3,005,617 | |
Chart Industries † | | | 51,863 | | | | 4,694,639 | |
CIRCOR International † | | | 47,497 | | | | 1,548,402 | |
Clean Harbors † | | | 78,963 | | | | 5,648,223 | |
Copart † | | | 60,198 | | | | 3,647,397 | |
CoStar Group † | | | 11,367 | | | | 5,301,796 | |
Dycom Industries † | | | 15,822 | | | | 726,863 | |
Gardner Denver Holdings † | | | 92,227 | | | | 2,564,833 | |
Gates Industrial † | | | 107,054 | | | | 1,535,154 | |
Genesee & Wyoming Class A † | | | 33,361 | | | | 2,907,077 | |
GrafTech International | | | 128,845 | | | | 1,647,927 | |
Granite Construction | | | 53,947 | | | | 2,327,813 | |
Harsco † | | | 47,838 | | | | 964,414 | |
Hub Group Class A † | | | 32,766 | | | | 1,338,491 | |
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common Stock² (continued) | |
| |
Industrials (continued) | | | | | | | | |
ICF International | | | 20,966 | | | $ | 1,595,093 | |
KAR Auction Services | | | 39,713 | | | | 2,037,674 | |
Knight-Swift Transportation Holdings | | | 47,370 | | | | 1,548,052 | |
Kratos Defense & Security Solutions † | | | 121,153 | | | | 1,893,621 | |
Masonite International † | | | 22,840 | | | | 1,139,488 | |
Middleby † | | | 42,320 | | | | 5,502,870 | |
PGT Innovations † | | | 83,860 | | | | 1,161,461 | |
Schneider National Class B | | | 91,560 | | | | 1,927,338 | |
Spirit Airlines † | | | 85,006 | | | | 4,493,417 | |
SPX † | | | 68,881 | | | | 2,396,370 | |
Wabash National | | | 90,428 | | | | 1,225,299 | |
Woodward | | | 17,733 | | | | 1,682,684 | |
| | | | | | | | |
| | | | | | | 69,959,327 | |
| | | | | | | | |
Information Technology – 32.73% | |
Advanced Micro Devices † | | | 157,254 | | | | 4,013,122 | |
Ambarella † | | | 51,069 | | | | 2,206,181 | |
Benefitfocus † | | | 34,615 | | | | 1,714,135 | |
Box Class A † | | | 116,985 | | | | 2,258,980 | |
Cabot Microelectronics | | | 14,309 | | | | 1,602,036 | |
Cadence Design
Systems † | | | 40,225 | | | | 2,554,690 | |
Carbon Black † | | | 97,712 | | | | 1,363,082 | |
Ciena † | | | 100,276 | | | | 3,744,306 | |
Cloudera † | | | 150,324 | | | | 1,644,544 | |
Cornerstone OnDemand † | | | 47,556 | | | | 2,605,118 | |
Cree † | | | 101,445 | | | | 5,804,683 | |
CyberArk Software
(Israel) † | | | 22,233 | | | | 2,646,839 | |
Cypress Semiconductor | | | 200,784 | | | | 2,995,697 | |
Etsy † | | | 107,573 | | | | 7,231,057 | |
Euronet Worldwide † | | | 37,460 | | | | 5,341,421 | |
Five9 † | | | 147,700 | | | | 7,802,991 | |
ForeScout Technologies † | | | 36,143 | | | | 1,514,753 | |
FormFactor † | | | 91,601 | | | | 1,473,860 | |
Keysight Technologies † | | | 76,835 | | | | 6,700,012 | |
LiveRamp Holdings † | | | 122,190 | | | | 6,667,908 | |
Logitech International † | | | 36,687 | | | | 1,443,266 | |
Lumentum Holdings † | | | 50,705 | | | | 2,866,861 | |
Mimecast † | | | 37,217 | | | | 1,762,225 | |
Nanometrics † | | | 31,651 | | | | 977,383 | |
New Relic † | | | 34,197 | | | | 3,375,244 | |
Nuance Communications † | | | 120,301 | | | | 2,036,696 | |
Okta † | | | 24,832 | | | | 2,054,351 | |
ON Semiconductor † | | | 87,281 | | | | 1,795,370 | |
PTC † | | | 36,569 | | | | 3,370,930 | |
Q2 Holdings † | | | 80,060 | | | | 5,544,956 | |
Rapid7 † | | | 86,942 | | | | 4,400,135 | |
Schedules of investments
Optimum Small-Mid Cap Growth Fund
| | | | | | | | |
| | | Number of | | | Value | |
| | | shares | | | (US $) | |
| |
Common Stock²(continued) | |
| |
Information Technology (continued) | |
RealPage † | | | 61,834 | | | $ | 3,752,705 | |
RingCentral Class A † | | | 80,181 | | | | 8,643,512 | |
Semtech † | | | 72,626 | | | | 3,697,390 | |
Silicon Motion Technology ADR | | | 33,169 | | | | 1,314,819 | |
SS&C Technologies Holdings | | | 58,604 | | | | 3,732,489 | |
Talend ADR † | | | 20,420 | | | | 1,032,639 | |
Tech Data † | | | 17,424 | | | | 1,784,392 | |
Teradyne | | | 49,114 | | | | 1,956,702 | |
Twilio Class A † | | | 38,437 | | | | 4,965,292 | |
Ultimate Software Group † | | | 7,282 | | | | 2,404,007 | |
WEX † | | | 32,284 | | | | 6,198,205 | |
Zebra Technologies Class A † | | | 53,619 | | | | 11,234,789 | |
Zendesk † | | | 163,265 | | | | 13,877,524 | |
Zuora Class A † | | | 86,024 | | | | 1,723,061 | |
| | | | | | | | |
| | | | | | | 167,830,358 | |
| | | | | | | | |
Materials – 2.17% | | | | | | | | |
Boise Cascade | | | 59,028 | | | | 1,579,589 | |
Element Solutions † | | | 175,337 | | | | 1,770,904 | |
Ingevity † | | | 27,604 | | | | 2,915,258 | |
Orion Engineered Carbons (Luxembourg) | | | 90,744 | | | | 1,723,228 | |
Steel Dynamics | | | 47,470 | | | | 1,674,267 | |
US Concrete † | | | 34,657 | | | | 1,435,493 | |
| | | | | | | | |
| | | | | | | 11,098,739 | |
| | | | | | | | |
Real Estate – 0.35% | | | | | | | | |
QTS Realty Trust Class A | | | 39,683 | | | | 1,785,338 | |
| | | | | | | | |
| | | | | | | 1,785,338 | |
| | | | | | | | |
Total Common Stock
(cost $405,820,080) | | | | | | | 501,725,890 | |
| | | | | | | | |
| | | | | | | | |
| |
Convertible Preferred Stock – 0.52% | | | | | |
| |
DocuSign | | | | | | | | |
Series Bp† | | | 1,166 | | | | 60,445 | |
SeriesB-1p† | | | 349 | | | | 18,092 | |
Series Cp† | | | 4,474 | | | | 231,932 | |
Series Dp† | | | 838 | | | | 43,442 | |
Series Ep† | | | 21,664 | | | | 1,123,062 | |
Draftkings | | | | | | | | |
Series D =p† | | | 83,549 | | | | 172,111 | |
SeriesD-1 =p† | | | 100,507 | | | | 207,044 | |
Honest=p† | | | 15,249 | | | | 193,190 | |
MarkLogic=p† | | | 83,588 | | | | 637,191 | |
| | | | | | | | |
Total Convertible Preferred Stock
(cost $2,763,119) | | | | | | | 2,686,509 | |
| | | | | | | | |
| | | | | | | | |
| | | Number of | | | Value | |
| | | shares | | | (US $) | |
| |
Short-Term Investments – 3.00% | |
| |
Money Market Mutual Fund – 3.00% | |
BlackRock FedFund - Institutional Shares(seven-day effective yield 2.36%) | | | 3,073,838 | | | $ | 3,073,838 | |
Fidelity Investments Money Market Government Portfolio - Class I(seven-day effective yield 2.31%) | | | 3,073,838 | | | | 3,073,838 | |
GS Financial Square Government Fund - Institutional Shares(seven-day effective yield 2.32%) | | | 3,073,838 | | | | 3,073,838 | |
Morgan Stanley Government Portfolio - Institutional Share Class(seven-day effective yield 2.33%) | | | 3,073,838 | | | | 3,073,838 | |
State Street Institutional US Government Money Market Fund - Investor Class(seven-day effective yield 2.31%) | | | 3,073,838 | | | | 3,073,838 | |
| | | | | | | | |
| | |
Total Short-Term Investments
(cost $15,369,190) | | | | | | | 15,369,190 | |
| | | | | | | | |
| | |
Total Value of
Securities – 101.37%
(cost $423,952,389) | | | | | | $ | 519,781,589 | |
| | | | | | | | |
| ² | Narrow industries are utilized for compliance purposes for diversification whereas broad sectors are used for financial reporting. |
| = | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the disclosure table located in Note 3 in “Notes to financial statements.” |
| p | Restricted security. These investments are in securities not registered under the Securities Act of 1933, as amended, and have certain restrictions on resale which may limit their liquidity. At March 31, 2019, the aggregate value of restricted securities was $2,686,509, which represented 0.52% of the Fund’s net assets. The Fund has various registration rights (exercisable under a variety of circumstances) with respect to these securities. See Note 10 in “Notes to financial statements” and the following table for additional details on restricted securities. |
| † | Non-income producing security. |
114
Restricted Securities
| | | | | | | | | | | | |
Investment | | Date of Acquisition | | | Cost | | | Value | |
DocuSign Series B | | | 2/28/14 | | | $ | 15,312 | | | $ | 60,445 | |
DocuSign SeriesB-1 | | | 2/28/14 | | | | 4,583 | | | | 18,092 | |
DocuSign Series C | | | 4/30/15 | | | | 85,423 | | | | 231,932 | |
DocuSign Series D | | | 2/28/14 | | | | 11,005 | | | | 43,442 | |
DocuSign Series E | | | 2/28/14 | | | | 284,500 | | | | 1,123,062 | |
Draftkings Series D | | | 8/11/15 | | | | 305,094 | | | | 172,111 | |
Draftkings SeriesD-1 | | | 8/18/15 | | | | 388,676 | | | | 207,044 | |
Honest | | | 8/3/15 | | | | 697,718 | | | | 193,190 | |
MarkLogic | | | 4/27/15 | | | | 970,808 | | | | 637,191 | |
| | | | | | | | | | | | |
Total | | | | | | $ | 2,763,119 | | | $ | 2,686,509 | |
| | | | | | | | | | | | |
Summary of abbreviations:
ADR – American Depositary Receipt
CVR – Contingent Voting Rights
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
Schedules of investments
OptimumSmall-Mid Cap Value Fund
March 31, 2019
| | | | | | | | |
| | | Number of | | | Value | |
| | | shares | | | (US $) | |
| |
Common Stock – 98.21% | |
| |
Communication Services – 2.02% | |
AMC Networks Class A † | | | 30,800 | | | $ | 1,748,208 | |
Cable One | | | 2,832 | | | | 2,779,268 | |
Entercom Communications Class A | | | 206,300 | | | | 1,083,075 | |
Zayo Group Holdings † | | | 171,760 | | | | 4,881,419 | |
| | | | | | | | |
| | | | | | | 10,491,970 | |
| | | | | | | | |
Consumer Discretionary – 9.93% | |
American Axle & Manufacturing
Holdings † | | | 114,200 | | | | 1,634,202 | |
American Eagle Outfitters | | | 62,200 | | | | 1,378,974 | |
Bed Bath & Beyond | | | 38,700 | | | | 657,513 | |
Bloomin’ Brands | | | 161,815 | | | | 3,309,117 | |
BorgWarner | | | 41,200 | | | | 1,582,492 | |
Brinker International | | | 33,200 | | | | 1,473,416 | |
Capri Holdings † | | | 15,000 | | | | 686,250 | |
Carter’s | | | 38,460 | | | | 3,876,383 | |
Children’s Place | | | 31,750 | | | | 3,088,640 | |
Cooper-Standard
Holdings † | | | 17,300 | | | | 812,408 | |
Dick’s Sporting Goods | | | 47,100 | | | | 1,733,751 | |
Foot Locker | | | 41,900 | | | | 2,539,140 | |
Goodyear Tire & Rubber | | | 70,000 | | | | 1,270,500 | |
Harley-Davidson | | | 28,800 | | | | 1,027,008 | |
Haverty Furniture | | | 43,900 | | | | 960,532 | |
Installed Building
Products † | | | 61,155 | | | | 2,966,018 | |
Kohl’s | | | 36,100 | | | | 2,482,597 | |
Lear | | | 11,700 | | | | 1,587,807 | |
MDC Holdings | | | 61,236 | | | | 1,779,518 | |
Nautilus † | | | 61,000 | | | | 339,160 | |
Nordstrom | | | 28,400 | | | | 1,260,392 | |
Office Depot | | | 174,900 | | | | 634,887 | |
Oxford Industries | | | 35,254 | | | | 2,653,216 | |
Penske Automotive Group | | | 19,700 | | | | 879,605 | |
PulteGroup | | | 53,000 | | | | 1,481,880 | |
Shoe Carnival | | | 31,500 | | | | 1,071,945 | |
Signet Jewelers | | | 12,800 | | | | 347,648 | |
Sonic Automotive Class A | | | 76,300 | | | | 1,130,003 | |
Tenneco Class A | | | 26,400 | | | | 585,024 | |
Toll Brothers | | | 49,500 | | | | 1,791,900 | |
Whirlpool | | | 10,600 | | | | 1,408,634 | |
Williams-Sonoma | | | 47,020 | | | | 2,645,815 | |
Wyndham Destinations | | | 12,500 | | | | 506,125 | |
| | | | | | | | |
| | | | | | | 51,582,500 | |
| | | | | | | | |
Consumer Staples – 3.17% | | | | | | | | |
BJ’s Wholesale Club Holdings † | | | 149,830 | | | | 4,105,342 | |
Ingles Markets Class A | | | 35,400 | | | | 977,748 | |
Ingredion | | | 14,500 | | | | 1,373,005 | |
| | | | | | | | |
| | | Number of | | | Value | |
| | | shares | | | (US $) | |
| |
Common Stock(continued) | |
| |
Consumer Staples (continued) | |
J&J Snack Foods | | | 16,704 | | | $ | 2,653,263 | |
Nomad Foods (United Kingdom) † | | | 176,205 | | | | 3,603,392 | |
Pilgrim’s Pride † | | | 59,400 | | | | 1,324,026 | |
Universal | | | 25,300 | | | | 1,458,039 | |
Weis Markets | | | 23,400 | | | | 954,954 | |
| | | | | | | | |
| | | | | | | 16,449,769 | |
| | | | | | | | |
Energy – 4.60% | | | | | | | | |
Arch Coal Class A | | | 7,600 | | | | 693,652 | |
Callon Petroleum † | | | 328,665 | | | | 2,481,421 | |
Carrizo Oil & Gas † | | | 64,400 | | | | 803,068 | |
Centennial Resource Development
Class A † | | | 71,101 | | | | 624,978 | |
Encana | | | 6,199 | | | | 44,881 | |
Gulfport Energy † | | | 150,700 | | | | 1,208,614 | |
HollyFrontier | | | 28,800 | | | | 1,418,976 | |
Laredo Petroleum † | | | 107,200 | | | | 331,248 | |
McDermott International † | | | 70,728 | | | | 526,216 | |
PBF Energy Class A | | | 50,100 | | | | 1,560,114 | |
Penn Virginia † | | | 90,570 | | | | 3,994,137 | |
Southwestern Energy † | | | 230,000 | | | | 1,078,700 | |
SRC Energy † | | | 128,400 | | | | 657,408 | |
US Silica Holdings | | | 39,900 | | | | 692,664 | |
W&T Offshore † | | | 179,300 | | | | 1,237,170 | |
WPX Energy † | | | 499,040 | | | | 6,542,414 | |
| | | | | | | | |
| | | | | | | 23,895,661 | |
| | | | | | | | |
Financials – 21.31% | | | | | | | | |
Ally Financial | | | 69,800 | | | | 1,918,802 | |
American Financial Group | | | 18,100 | | | | 1,741,401 | |
Annaly Capital Management | | | 139,300 | | | | 1,391,607 | |
Apollo Commercial Real Estate Finance | | | 77,600 | | | | 1,412,320 | |
Ares Capital | | | 56,000 | | | | 959,840 | |
Assurant | | | 39,270 | | | | 3,727,116 | |
Assured Guaranty (Bermuda) | | | 34,400 | | | | 1,528,392 | |
Axis Capital Holdings | | | 25,900 | | | | 1,418,802 | |
Banco Latinoamericano de Comercio Exterior (Panama) | | | 23,105 | | | | 460,252 | |
BankUnited | | | 34,200 | | | | 1,142,280 | |
Berkshire Hills Bancorp | | | 44,099 | | | | 1,201,257 | |
Blackstone Mortgage Trust Class A | | | 41,500 | | | | 1,434,240 | |
Cathay General Bancorp | | | 33,600 | | | | 1,139,376 | |
Central Pacific Financial | | | 34,200 | | | | 986,328 | |
Chemical Financial | | | 138,736 | | | | 5,710,374 | |
116
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common Stock(continued) | | | | | |
| |
Financials (continued) | | | | | | | | |
CIT Group | | | 61,800 | | | $ | 2,964,546 | |
CNA Financial | | | 60,200 | | | | 2,609,670 | |
CNO Financial Group | | | 127,400 | | | | 2,061,332 | |
Customers Bancorp † | | | 37,700 | | | | 690,287 | |
Everest Re Group (Bermuda) | | | 33,410 | | | | 7,215,224 | |
First American Financial | | | 30,200 | | | | 1,555,300 | |
First Busey | | | 45,200 | | | | 1,102,880 | |
First Hawaiian | | | 194,210 | | | | 5,059,171 | |
First Horizon National | | | 133,695 | | | | 1,869,056 | |
Hancock Whitney | | | 31,300 | | | | 1,264,520 | |
Hanmi Financial | | | 56,800 | | | | 1,208,136 | |
HCI Group | | | 17,300 | | | | 739,229 | |
Heritage Insurance Holdings | | | 32,300 | | | | 471,580 | |
Hope Bancorp | | | 122,400 | | | | 1,600,992 | |
Houlihan Lokey | | | 118,945 | | | | 5,453,628 | |
Ladder Capital | | | 79,394 | | | | 1,351,286 | |
Lazard Class A | | | 39,600 | | | | 1,431,144 | |
Legg Mason | | | 40,000 | | | | 1,094,800 | |
Mercury General | | | 101,445 | | | | 5,079,351 | |
MGIC Investment † | | | 107,200 | | | | 1,413,968 | |
New Mountain Finance | | | 71,900 | | | | 975,683 | |
Oaktree Specialty Lending | | | 4,294 | | | | 22,243 | |
OFG Bancorp | | | 60,700 | | | | 1,201,253 | |
Preferred Bank | | | 19,200 | | | | 863,424 | |
Prospect Capital | | | 160,841 | | | | 1,048,683 | |
Radian Group | | | 69,500 | | | | 1,441,430 | |
Reinsurance Group of America | | | 21,200 | | | | 3,009,976 | |
Renasant | | | 67,825 | | | | 2,295,876 | |
Santander Consumer USA Holdings | | | 88,500 | | | | 1,870,005 | |
Starwood Property Trust | | | 81,600 | | | | 1,823,760 | |
TCF Financial | | | 163,600 | | | | 3,384,884 | |
Universal Insurance Holdings | | | 41,300 | | | | 1,280,300 | |
Unum Group | | | 75,700 | | | | 2,560,931 | |
Washington Federal | | | 43,100 | | | | 1,245,159 | |
Western Alliance Bancorp † | | | 140,450 | | | | 5,764,068 | |
Zions Bancorp | | | 210,273 | | | | 9,548,497 | |
| | | | | | | | |
| | | | | | | 110,744,659 | |
| | | | | | | | |
Healthcare – 5.55% | | | | | | | | |
Cooper | | | 13,035 | | | | 3,860,576 | |
Jazz Pharmaceuticals † | | | 13,300 | | | | 1,901,235 | |
Lannett † | | | 44,200 | | | | 347,854 | |
Lantheus Holdings † | | | 56,200 | | | | 1,375,776 | |
Mallinckrodt † | | | 41,000 | | | | 891,340 | |
Owens & Minor | | | 54,900 | | | | 225,090 | |
PerkinElmer | | | 54,625 | | | | 5,263,665 | |
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common Stock(continued) | | | | | |
| |
Healthcare (continued) | | | | | | | | |
Premier Class A † | | | 68,675 | | | $ | 2,368,601 | |
Quest Diagnostics | | | 11,600 | | | | 1,043,072 | |
Steris | | | 34,360 | | | | 4,399,111 | |
Teleflex | | | 17,540 | | | | 5,299,886 | |
United Therapeutics † | | | 16,000 | | | | 1,877,920 | |
| | | | | | | | |
| | | | | | | 28,854,126 | |
| | | | | | | | |
Industrials – 14.78% | | | | | | | | |
ACCO Brands | | | 146,000 | | | | 1,249,760 | |
Acuity Brands | | | 13,900 | | | | 1,668,139 | |
Aircastle | | | 55,700 | | | | 1,127,368 | |
Alaska Air Group | | | 60,050 | | | | 3,370,006 | |
Albany International Class A | | | 35,357 | | | | 2,531,208 | |
Allison Transmission Holdings | | | 55,500 | | | | 2,493,060 | |
Apogee Enterprises | | | 36,200 | | | | 1,357,138 | |
Atlas Air Worldwide Holdings † | | | 24,100 | | | | 1,218,496 | |
Briggs & Stratton | | | 39,700 | | | | 469,651 | |
Curtiss-Wright | | | 33,725 | | | | 3,822,392 | |
Deluxe | | | 29,800 | | | | 1,302,856 | |
Ennis | | | 45,800 | | | | 950,808 | |
Hawaiian Holdings | | | 45,300 | | | | 1,189,125 | |
Herman Miller | | | 46,400 | | | | 1,632,352 | |
Hubbell | | | 40,120 | | | | 4,733,358 | |
Huntington Ingalls Industries | | | 33,670 | | | | 6,976,424 | |
Interface | | | 86,845 | | | | 1,330,465 | |
JetBlue Airways † | | | 109,300 | | | | 1,788,148 | |
KAR Auction Services | | | 94,585 | | | | 4,853,156 | |
NCI Building Systems † | | | 102,100 | | | | 628,936 | |
nVent Electric | | | 197,030 | | | | 5,315,869 | |
Oshkosh | | | 24,800 | | | | 1,863,224 | |
Owens Corning | | | 22,400 | | | | 1,055,488 | |
Pentair (United Kingdom) | | | 60,140 | | | | 2,676,831 | |
Pitney Bowes | | | 45,300 | | | | 311,211 | |
Quanta Services | | | 41,400 | | | | 1,562,436 | |
Regal Beloit | | | 21,400 | | | | 1,752,018 | |
Ryder System | | | 31,700 | | | | 1,965,083 | |
Spirit AeroSystems Holdings Class A | | | 51,200 | | | | 4,686,336 | |
Terex | | | 34,700 | | | | 1,114,911 | |
Timken | | | 37,000 | | | | 1,613,940 | |
Triton International | | | 35,300 | | | | 1,097,830 | |
UniFirst | | | 18,165 | | | | 2,788,328 | |
Wabash National | | | 130,500 | | | | 1,768,275 | |
Woodward | | | 26,531 | | | | 2,517,527 | |
| | | | | | | | |
| | | | | | | 76,782,153 | |
| | | | | | | | |
Information Technology – 11.59% | | | | | |
Advanced Energy Industries † | | | 25,700 | | | | 1,276,776 | |
Schedules of investments
Optimum Small-Mid Cap Value Fund
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common Stock(continued) | | | | | |
| |
Information Technology (continued) | |
Amdocs | | | 40,600 | | | $ | 2,196,866 | |
Arrow Electronics † | | | 18,700 | | | | 1,441,022 | |
Avnet | | | 44,000 | | | | 1,908,280 | |
Booz Allen Hamilton Holding | | | 67,834 | | | | 3,943,869 | |
Ciena † | | | 47,800 | | | | 1,784,852 | |
Cirrus Logic † | | | 27,400 | | | | 1,152,718 | |
Coherent † | | | 20,220 | | | | 2,865,578 | |
CSG Systems International | | | 18,200 | | | | 769,860 | |
Diodes † | | | 43,900 | | | | 1,523,330 | |
Flex † | | | 104,000 | | | | 1,040,000 | |
FLIR Systems | | | 52,452 | | | | 2,495,666 | |
Genpact | | | 81,025 | | | | 2,850,460 | |
Jabil | | | 74,000 | | | | 1,967,660 | |
Juniper Networks | | | 98,000 | | | | 2,594,060 | |
Littelfuse | | | 27,110 | | | | 4,947,033 | |
Methode Electronics | | | 33,100 | | | | 952,618 | |
MKS Instruments | | | 41,930 | | | | 3,901,587 | |
Monolithic Power Systems | | | 28,675 | | | | 3,885,176 | |
NCR † | | | 67,500 | | | | 1,842,075 | |
ON Semiconductor † | | | 139,500 | | | | 2,869,515 | |
OSI Systems † | | | 28,401 | | | | 2,487,928 | |
Sanmina † | | | 59,300 | | | | 1,710,805 | |
SYNNEX | | | 3,965 | | | | 378,221 | |
Tech Data † | | | 23,100 | | | | 2,365,671 | |
Teradyne | | | 28,900 | | | | 1,151,376 | |
TTM Technologies † | | | 84,100 | | | | 986,493 | |
Western Union | | | 51,400 | | | | 949,358 | |
Xerox | | | 61,300 | | | | 1,960,374 | |
| | | | | | | | |
| | | | | | | 60,199,227 | |
| | | | | | | | |
Materials – 7.87% | | | | | | | | |
Albemarle | | | 51,682 | | | | 4,236,890 | |
Cabot | | | 26,400 | | | | 1,099,032 | |
Celanese Class A | | | 19,000 | | | | 1,873,590 | |
Chemours | | | 49,500 | | | | 1,839,420 | |
Clearwater Paper † | | | 25,400 | | | | 494,792 | |
Domtar | | | 45,500 | | | | 2,259,075 | |
Eagle Materials | | | 61,534 | | | | 5,187,316 | |
Eastman Chemical | | | 15,700 | | | | 1,191,316 | |
Huntsman | | | 70,700 | | | | 1,590,043 | |
Kronos Worldwide | | | 88,300 | | | | 1,237,966 | |
Owens-Illinois | | | 59,800 | | | | 1,135,004 | |
Packaging Corp. of America | | | 14,200 | | | | 1,411,196 | |
PolyOne | | | 130,389 | | | | 3,821,702 | |
Rayonier Advanced Materials | | | 65,400 | | | | 886,824 | |
Reliance Steel & Aluminum | | | 21,500 | | | | 1,940,590 | |
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common Stock (continued) | | | | | |
| |
Materials (continued) | | | | | | | | |
RPM International | | | 43,120 | | | $ | 2,502,685 | |
Schweitzer-Mauduit International | | | 32,700 | | | | 1,266,144 | |
Summit Materials Class A † | | | 186,421 | | | | 2,958,501 | |
Trinseo | | | 31,700 | | | | 1,436,010 | |
US Steel | | | 34,000 | | | | 662,660 | |
Westrock | | | 48,000 | | | | 1,840,800 | |
| | | | | | | | |
| | | | | | | 40,871,556 | |
| | | | | | | | |
Real Estate – 13.30% | | | | | | | | |
American Homes 4 Rent Class A | | | 247,435 | | | | 5,621,723 | |
Americold Realty Trust | | | 84,601 | | | | 2,581,176 | |
Apple Hospitality REIT | | | 68,979 | | | | 1,124,358 | |
Brandywine Realty Trust | | | 301,750 | | | | 4,785,755 | |
Brixmor Property Group | | | 121,300 | | | | 2,228,281 | |
CBL & Associates Properties | | | 63,700 | | | | 98,735 | |
City Office REIT (Canada) | | | 93,700 | | | | 1,059,747 | |
CoreCivic | | | 56,200 | | | | 1,093,090 | |
Franklin Street Properties | | | 93,612 | | | | 673,070 | |
Gaming And Leisure Properties | | | 56,700 | | | | 2,186,919 | |
Hospitality Properties Trust | | | 104,300 | | | | 2,744,133 | |
Hudson Pacific Properties | | | 153,805 | | | | 5,293,968 | |
Industrial Logistics Properties Trust | | | 44,622 | | | | 900,026 | |
Kite Realty Group Trust | | | 75,900 | | | | 1,213,641 | |
Lexington Realty Trust | | | 201,200 | | | | 1,822,872 | |
Mack-Cali Realty | | | 43,400 | | | | 963,480 | |
Medical Properties Trust | | | 157,100 | | | | 2,907,921 | |
Office Properties Income Trust | | | 45,688 | | | | 1,262,816 | |
Omega Healthcare Investors | | | 39,200 | | | | 1,495,480 | |
One Liberty Properties | | | 51,900 | | | | 1,505,100 | |
Physicians Realty Trust | | | 334,020 | | | | 6,282,916 | |
Piedmont Office Realty Trust Class A | | | 78,300 | | | | 1,632,555 | |
Preferred Apartment Communities Class A | | | 72,100 | | | | 1,068,522 | |
Retail Properties of America Class A | | | 286,620 | | | | 3,493,898 | |
Retail Value | | | 5,200 | | | | 162,084 | |
RPT Realty | | | 104,000 | | | | 1,249,040 | |
Senior Housing Properties Trust | | | 123,300 | | | | 1,452,474 | |
SITE Centers | | | 50,650 | | | | 689,853 | |
Spirit Realty Capital | | | 37,360 | | | | 1,484,313 | |
STAG Industrial | | | 211,630 | | | | 6,274,830 | |
Summit Hotel Properties | | | 63,000 | | | | 718,830 | |
118
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Common Stock(continued) | | | | | |
| |
Real Estate (continued) | | | | | |
VEREIT | | | 205,200 | | | $ | 1,717,524 | |
Xenia Hotels & Resorts | | | 60,500 | | | | 1,325,555 | |
| | | | | | | | |
| | | | | | | 69,114,685 | |
| | | | | | | | |
Utilities – 4.09% | | | | | | | | |
AES | | | 68,300 | | | | 1,234,864 | |
Alliant Energy | | | 139,042 | | | | 6,553,049 | |
CenterPoint Energy | | | 49,000 | | | | 1,504,300 | |
IDACORP | | | 63,580 | | | | 6,328,753 | |
National Fuel Gas | | | 49,200 | | | | 2,999,232 | |
South Jersey Industries | | | 82,880 | | | | 2,657,962 | |
| | | | | | | | |
| | | | | | | 21,278,160 | |
| | | | | | | | |
Total Common Stock
(cost $492,126,734) | | | | | | | 510,264,466 | |
| | | | | | | | |
| | | | | |
| |
Short-Term Investments – 2.11% | | | | | |
| |
Money Market Mutual Fund – 2.11% | | | | | |
BlackRock FedFund - Institutional Shares
(seven-day effective
yield 2.36%) | | | 2,197,013 | | | | 2,197,013 | |
Fidelity Investments Money
Market Government
Portfolio - Class I
(seven-day effective
yield 2.31%) | | | 2,197,013 | | | | 2,197,013 | |
GS Financial Square
Government Fund -
Institutional Shares
(seven-day effective
yield 2.32%) | | | 2,197,013 | | | | 2,197,013 | |
| | | | | | | | |
| | | Number of
shares | | | Value (US $) | |
| |
Short-Term Investments(continued) | | | | | |
| |
Money Market Mutual Fund (continued) | | | | | |
Morgan Stanley Government Portfolio - Institutional Share Class(seven-day effective yield 2.33%) | | | 2,197,013 | | | $ | 2,197,013 | |
State Street Institutional US Government Money Market Fund - Investor Class(seven-day effective yield 2.31%) | | | 2,197,013 | | | | 2,197,013 | |
| | | | | | | | |
| | | | | | | 10,985,065 | |
| | | | | | | | |
Total Short-Term Investments
(cost $10,985,065) | | | | | | | 10,985,065 | |
| | | | | | | | |
| | |
Total Value of
Securities – 100.32%
(cost $503,111,799) | | | | | | $ | 521,249,531 | |
| | | | | | | | |
| ° | Principal amount shown is stated in USD unless noted that the security is denominated in another currency. |
| † | Non-income producing security. |
Summary of abbreviations:
REIT – Real Estate Investment Trust
USD – US Dollar
See accompanying notes, which are an integral part of the financial statements.
Statements of assets and liabilities
Optimum Fund Trust
March 31, 2019
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Optimum
Fixed Income
Fund | | Optimum
International
Fund | | Optimum
Large Cap
Growth Fund | | Optimum
Large Cap
Value Fund | | Optimum
Small-Mid Cap
Growth Fund | | Optimum
Small-Mid Cap
Value Fund |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value1,2 | | | | $2,821,903,438 | | | | | $549,654,548 | | | | | $1,678,782,956 | | | | | $1,563,451,415 | | | | | $519,781,589 | | | | | $521,249,531 | |
Short-term investments held as collateral for loaned securities, at value4 | | | | — | | | | | 8,258,807 | | | | | — | | | | | — | | | | | — | | | | | — | |
Foreign currencies, at value5 | | | | 3,959,754 | | | | | 2,464,550 | | | | | — | | | | | — | | | | | — | | | | | — | |
Cash | | | | 3,206,915 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Cash collateral due from brokers | | | | 2,090,327 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Receivable for securities sold | | | | 304,545,686 | | | | | 4,046,233 | | | | | 2,645,045 | | | | | 13,356,954 | | | | | 1,961,806 | | | | | 777,331 | |
Dividends and interest receivable | | | | 15,692,214 | | | | | 2,306,723 | | | | | 559,516 | | | | | 2,068,720 | | | | | 160,030 | | | | | 850,100 | |
Unrealized appreciation of foreign currency exchange contracts | | | | 1,747,022 | | | | | 922 | | | | | — | | | | | — | | | | | — | | | | | — | |
Receivable for fund shares sold | | | | 4,438,471 | | | | | 847,041 | | | | | 1,877,973 | | | | | 2,068,982 | | | | | 728,073 | | | | | 837,594 | |
Variation margin due from brokers on centrally cleared interest rate swap contracts | | | | 461,504 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Upfront payments paid on interest rate swap contracts | | | | 2,980,837 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Unrealized appreciation of credit default swap contracts | | | | 1,195,590 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Swap payments receivable | | | | 823,485 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Upfront payments paid on credit default swap contracts | | | | 24,405 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Variation margin due from brokers on centrally cleared credit default swap contracts | | | | 235 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Securities lending income receivable | | | | — | | | | | 33,040 | | | | | — | | | | | — | | | | | — | | | | | — | |
Foreign tax reclaims receivable | | | | — | | | | | 1,309,394 | | | | | 3,892 | | | | | 488,256 | | | | | — | | | | | — | |
Other assets6 | | | | 415,736 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | | 3,163,485,619 | | | | | 568,921,258 | | | | | 1,683,869,382 | | | | | 1,581,434,327 | | | | | 522,631,498 | | | | | 523,714,556 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
120
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Optimum
Fixed Income
Fund | | Optimum
International
Fund | | Optimum
Large Cap
Growth Fund | | Optimum
Large Cap
Value Fund | | Optimum
Small-Mid Cap
Growth Fund | | Optimum
Small-Mid Cap
Value Fund |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Options written, at value7 | | | $ | 124 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | — | |
Securities sold short, at value3 | | | | — | | | | | — | | | | | — | | | | | 414,692 | | | | | — | | | | | — | |
Cash due to custodian | | | | — | | | | | 126,484 | | | | | 979,689 | | | | | 257,414 | | | | | 284,457 | | | | | 144,911 | |
Payable for securities purchased | | | | 776,033,906 | | | | | 5,616,425 | | | | | 4,120,822 | | | | | 10,698,580 | | | | | 8,707,473 | | | | | 3,211,638 | |
Cash collateral due to brokers | | | | 8,140,000 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Swap payments payable | | | | 1,390,301 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Payable for fund shares redeemed | | | | 1,177,319 | | | | | 237,635 | | | | | 1,002,208 | | | | | 742,688 | | | | | 291,997 | | | | | 220,493 | |
Variation margin due to brokers on futures contracts | | | | 1,089,324 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Dividend disbursing and transfer agent fees payable to affiliates | | | | 358,455 | | | | | 84,276 | | | | | 253,660 | | | | | 238,183 | | | | | 78,692 | | | | | 79,248 | |
Variation margin due to brokers on centrally cleared interest rate swap contracts | | | | 67,668 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Obligation to return securities lending collateral | | | | — | | | | | 8,242,395 | | | | | — | | | | | — | | | | | — | | | | | — | |
Variation margin due to brokers on centrally cleared credit default swap contracts | | | | 5,778 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Interest payable for reverse repurchase agreements | | | | 10,710 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Investment management fees payable to affiliates | | | | 1,016,216 | | | | | 351,645 | | | | | 976,313 | | | | | 856,411 | | | | | 358,389 | | | | | 341,767 | |
Other accrued expenses | | | | 360,875 | | | | | 190,621 | | | | | 209,629 | | | | | 203,495 | | | | | 97,129 | | | | | 93,524 | |
Administration expenses payable to affiliates | | | | 104,549 | | | | | 24,580 | | | | | 73,984 | | | | | 69,470 | | | | | 22,952 | | | | | 23,114 | |
Distribution fees payable to affiliates | | | | 83,571 | | | | | 20,018 | | | | | 76,221 | | | | | 63,827 | | | | | 12,589 | | | | | 8,806 | |
Accounting fees payable to affiliates | | | | 13,640 | | | | | 3,467 | | | | | 9,751 | | | | | 9,177 | | | | | 3,259 | | | | | 3,280 | |
Trustees’ fees and expenses payable to affiliates | | | | 360 | | | | | 85 | | | | | 252 | | | | | 237 | | | | | 79 | | | | | 81 | |
Upfront payments received on credit default swap contracts | | | | 1,709,783 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Upfront payments received on interest rate swap contracts | | | | 1,120,805 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Unrealized depreciation of foreign currency exchange contracts | | | | 509,861 | | | | | 41,165 | | | | | — | | | | | — | | | | | — | | | | | — | |
Unrealized depreciation of credit default swap contracts | | | | 86,470 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Contingent liabilities6 | | | | 1,385,788 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Other liabilities | | | | — | | | | | 19,871 | | | | | — | | | | | — | | | | | — | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | | 794,665,503 | | | | | 14,958,667 | | | | | 7,702,529 | | | | | 13,554,174 | | | | | 9,857,016 | | | | | 4,126,862 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Net Assets | | | $ | 2,368,820,116 | | | | $ | 553,962,591 | | | | $ | 1,676,166,853 | | | | $ | 1,567,880,153 | | | | $ | 512,774,482 | | | | $ | 519,587,694 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net Assets Consist of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Paid-in capital | | | $ | 2,373,496,570 | | | | $ | 511,156,124 | | | | $ | 1,253,653,531 | | | | $ | 1,289,752,688 | | | | $ | 406,469,630 | | | | $ | 490,909,719 | |
Total distributable earnings (loss) | | | | (4,676,454 | ) | | | | 42,806,467 | | | | | 422,513,322 | | | | | 278,127,465 | | | | | 106,304,852 | | | | | 28,677,975 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Net Assets | | | $ | 2,368,820,116 | | | | $ | 553,962,591 | | | | $ | 1,676,166,853 | | | | $ | 1,567,880,153 | | | | $ | 512,774,482 | | | | $ | 519,587,694 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Statements of assets and liabilities
Optimum Fund Trust
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Optimum
Fixed
Income
Fund | | Optimum
International
Fund | | Optimum
Large Cap
Growth
Fund | | Optimum
Large Cap
Value Fund | | Optimum
Small-Mid Cap
Growth Fund | | Optimum
Small-Mid Cap
Value Fund |
Net Asset Value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets | | | $ | 26,612,983 | | | | $ | 7,274,977 | | | | $ | 29,604,930 | | | | $ | 23,742,293 | | | | $ | 4,787,893 | | | | $ | 3,265,914 | |
Shares of beneficial interest outstanding, unlimited authorization, no par | | | | 2,813,782 | | | | | 577,968 | | | | | 1,772,918 | | | | | 1,499,768 | | | | | 356,496 | | | | | 268,919 | |
Net asset value per share | | | $ | 9.46 | | | | $ | 12.59 | | | | $ | 16.70 | | | | $ | 15.83 | | | | $ | 13.43 | | | | $ | 12.14 | |
Sales charge | | | | 4.50 | % | | | | 5.75 | % | | | | 5.75 | % | | | | 5.75 | % | | | | 5.75 | % | | | | 5.75 | % |
Offering price per share, equal to net asset value per share / (1 – sales charge) | | | $ | 9.91 | | | | $ | 13.36 | | | | $ | 17.72 | | | | $ | 16.80 | | | | $ | 14.25 | | | | $ | 12.88 | |
| | | | | | |
Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets | | | $ | 92,294,840 | | | | $ | 21,762,848 | | | | $ | 83,010,363 | | | | $ | 69,414,902 | | | | $ | 13,510,763 | | | | $ | 9,507,590 | |
Shares of beneficial interest outstanding, unlimited authorization, no par | | | | 9,761,668 | | | | | 1,773,578 | | | | | 6,067,521 | | | | | 4,436,360 | | | | | 1,234,707 | | | | | 902,132 | |
Net asset value per share | | | $ | 9.45 | | | | $ | 12.27 | | | | $ | 13.68 | | | | $ | 15.65 | | | | $ | 10.94 | | | | $ | 10.54 | |
| | | | | | |
Institutional Class: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets | | | $ | 2,249,912,293 | | | | $ | 524,924,766 | | | | $ | 1,563,551,560 | | | | $ | 1,474,722,958 | | | | $ | 494,475,826 | | | | $ | 506,814,190 | |
Shares of beneficial interest outstanding, unlimited authorization, no par | | | | 238,091,578 | | | | | 41,405,755 | | | | | 86,241,082 | | | | | 92,943,021 | | | | | 33,668,658 | | | | | 39,274,553 | |
Net asset value per share | | | $ | 9.45 | | | | $ | 12.68 | | | | $ | 18.13 | | | | $ | 15.87 | | | | $ | 14.69 | | | | $ | 12.90 | |
| | | | | | |
______________ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1Investments, at cost | | | $ | 2,798,496,502 | | | | $ | 508,389,273 | | | | $ | 1,267,429,619 | | | | $ | 1,288,746,820 | | | | $ | 423,952,389 | | | | $ | 503,111,799 | |
2Including securities on loan | | | | — | | | | | 9,242,284 | | | | | — | | | | | — | | | | | — | | | | | — | |
3Securities sold short, proceeds | | | | — | | | | | — | | | | | — | | | | | (397,035 | ) | | | | — | | | | | — | |
4Short-term investments held as collateral for loaned securities, at cost | | | | — | | | | | 8,258,781 | | | | | — | | | | | — | | | | | — | | | | | — | |
5Foreign currencies, at cost | | | | 4,014,881 | | | | | 2,464,515 | | | | | — | | | | | — | | | | | — | | | | | — | |
6See Note 12 in “Notes to financial statements.” | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
7Premium received | | | | (6,738 | ) | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
See accompanying notes, which are an integral part of the financial statements.
122
Statements of operations
Optimum Fund Trust
Year ended March 31, 2019
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Optimum
Fixed Income
Fund | | Optimum
International
Fund | | Optimum
Large Cap
Growth Fund | | Optimum
Large Cap
Value Fund | | Optimum
Small-Mid Cap
Growth Fund | | Optimum
Small-Mid Cap
Value Fund |
Investment Income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest | | | $ | 77,171,846 | | | | $ | 112,780 | | | | $ | 438,787 | | | | $ | 512,911 | | | | $ | 261,042 | | | | $ | 185,980 | |
Dividends | | | | 479,147 | | | | | 17,087,590 | | | | | 17,470,342 | | | | | 36,509,513 | | | | | 1,961,630 | | | | | 11,502,485 | |
Securities lending income | | | | — | | | | | 315,023 | | | | | — | | | | | — | | | | | — | | | | | — | |
Foreign tax withheld | | | | (46,135 | ) | | | | (1,799,460 | ) | | | | (94,984 | ) | | | | (81,706 | ) | | | | (10,163 | ) | | | | (2,813 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 77,604,858 | | | | | 15,715,933 | | | | | 17,814,145 | | | | | 36,940,718 | | | | | 2,212,509 | | | | | 11,685,652 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management fees | | | | 11,403,261 | | | | | 4,383,663 | | | | | 11,655,429 | | | | | 9,863,918 | | | | | 5,421,724 | | | | | 4,755,512 | |
Distribution expenses — Class A | | | | 69,192 | | | | | 19,380 | | | | | 76,690 | | | | | 61,702 | | | | | 12,922 | | | | | 8,894 | |
Distribution expenses — Class C | | | | 961,281 | | | | | 238,849 | | | | | 884,920 | | | | | 739,705 | | | | | 147,123 | | | | | 106,385 | |
Dividend disbursing and transfer agent fees and expenses | | | | 4,026,208 | | | | | 1,081,927 | | | | | 3,072,856 | | | | | 2,773,681 | | | | | 959,317 | | | | | 926,875 | |
Administration expenses | | | | 1,161,579 | | | | | 309,028 | | | | | 884,576 | | | | | 798,112 | | | | | 272,993 | | | | | 263,641 | |
Accounting fees | | | | 514,345 | | | | | 164,181 | | | | | 400,406 | | | | | 364,987 | | | | | 149,364 | | | | | 145,556 | |
Trustees’ fees and expenses | | | | 277,109 | | | | | 71,220 | | | | | 207,662 | | | | | 188,212 | | | | | 64,105 | | | | | 62,167 | |
Reports and statements to shareholders expenses | | | | 275,947 | | | | | 134,702 | | | | | 332,514 | | | | | 260,756 | | | | | 229,524 | | | | | 171,549 | |
Custodian fees | | | | 253,794 | | | | | 206,819 | | | | | 45,171 | | | | | 40,630 | | | | | 21,013 | | | | | 11,927 | |
Pricing fees | | | | 240,452 | | | | | 74,634 | | | | | 4,307 | | | | | 5,210 | | | | | 40,034 | | | | | 1,892 | |
Professional fees | | | | 191,296 | | | | | 82,946 | | | | | 138,560 | | | | | 116,167 | | | | | 68,646 | | | | | 55,927 | |
Registration fees | | | | 95,166 | | | | | 62,775 | | | | | 52,973 | | | | | 70,434 | | | | | 63,989 | | | | | 69,177 | |
Insurance fees | | | | 39,311 | | | | | 11,229 | | | | | 30,732 | | | | | 27,711 | | | | | 9,560 | | | | | 9,650 | |
Investment interest expense | | | | 11,089 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Tax services | | | | 2,544 | | | | | 21,343 | | | | | 1,182 | | | | | 342 | | | | | 881 | | | | | 970 | |
Other | | | | 13,184 | | | | | 7,138 | | | | | 11,439 | | | | | 10,879 | | | | | 6,251 | | | | | 9,443 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 19,535,758 | | | | | 6,869,834 | | | | | 17,799,417 | | | | | 15,322,446 | | | | | 7,467,446 | | | | | 6,599,565 | |
Less expenses waived | | | | — | | | | | — | | | | | — | | | | | — | | | | | (594,291 | ) | | | | (391,114 | ) |
Less expenses paid indirectly | | | | (94,264 | ) | | | | (1,593 | ) | | | | (2,490 | ) | | | | (6,192 | ) | | | | (2,485 | ) | | | | (2,059 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | | 19,441,494 | | | | | 6,868,241 | | | | | 17,796,927 | | | | | 15,316,254 | | | | | 6,870,670 | | | | | 6,206,392 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (Loss) | | | | 58,163,364 | | | | | 8,847,692 | | | | | 17,218 | | | | | 21,624,464 | | | | | (4,658,161 | ) | | | | 5,479,260 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Statements of operations
Optimum Fund Trust
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Optimum
Fixed Income
Fund | | Optimum
International
Fund | | Optimum
Large Cap
Growth Fund | | Optimum
Large Cap
Value Fund | | Optimum
Small-Mid Cap
Growth Fund | | Optimum
Small-Mid Cap
Value Fund |
Net Realized and Unrealized Gain (Loss): | | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments | | | $ | (6,234,536 | ) | | | $ | 16,298,216 | | | | $ | 146,317,187 | | | | $ | 23,082,738 | | | | $ | 61,283,820 | | | | $ | 26,854,009 | |
Securities sold short | | | | (13 | ) | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Foreign currencies | | | | (11,356,087 | ) | | | | 618,978 | | | | | 6,555 | | | | | (4,577 | ) | | | | — | | | | | — | |
Foreign currency exchange contracts | | | | 9,003,111 | | | | | (804,500 | ) | | | | (5,911 | ) | | | | 4,185 | | | | | — | | | | | — | |
Futures contracts | | | | 17,775,733 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Options purchased | | | | (1,128,560 | ) | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Options written | | | | 1,319,321 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Swap contracts | | | | (1,063,558 | ) | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized gain | | | | 8,315,411 | | | | | 16,112,694 | | | | | 146,317,831 | | | | | 23,082,346 | | | | | 61,283,820 | | | | | 26,854,009 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net change in unrealized appreciation (depreciation) of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments1 | | | | 26,207,144 | | | | | (56,292,131 | ) | | | | 52,505,402 | | | | | 14,962,843 | | | | | (9,645,134 | ) | | | | (53,926,698 | ) |
Foreign currencies | | | | (156,087 | ) | | | | (90,027 | ) | | | | 982 | | | | | (12,472 | ) | | | | — | | | | | — | |
Foreign currency exchange contracts | | | | 1,176,091 | | | | | (40,401 | ) | | | | — | | | | | — | | | | | — | | | | | — | |
Futures contracts | | | | (4,401,816 | ) | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Options purchased | | | | 823,533 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Options written | | | | (771,823 | ) | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
Swap contracts | | | | (7,285,391 | ) | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net change in unrealized appreciation (depreciation) | | | | 15,591,651 | | | | | (56,422,559 | ) | | | | 52,506,384 | | | | | 14,950,371 | | | | | (9,645,134 | ) | | | | (53,926,698 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Realized and Unrealized Gain (Loss) | | | | 23,907,062 | | | | | (40,309,865 | ) | | | | 198,824,215 | | | | | 38,032,717 | | | | | 51,638,686 | | | | | (27,072,689 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | $ | 82,070,426 | | | | $ | (31,462,173 | ) | | | $ | 198,841,433 | | | | $ | 59,657,181 | | | | $ | 46,980,525 | | | | $ | (21,593,429 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1Includes decrease of $37,691 capital gain taxes accrued for Optimum International Fund.
See accompanying notes, which are an integral part of the financial statements.
124
Statements of changes in net assets
Optimum Fund Trust
| | | | | | | | | | | | | | | | |
| | | Optimum Fixed Income Fund | | | Optimum International Fund | |
| | | Year ended | | | Year ended | |
| | | 3/31/19 | | | 3/31/18 | | | 3/31/19 | | | 3/31/18 | |
Increase (Decrease) in Net Assets from Operations: | | | | | | | | | | | | | | | | |
Net investment income | | $ | 58,163,364 | | | $ | 48,178,820 | | | $ | 8,847,692 | | | $ | 6,920,399 | |
Net realized gain (loss) | | | 8,315,411 | | | | (15,530,877 | ) | | | 16,112,694 | | | | 43,717,618 | |
Net change in unrealized appreciation (depreciation) | | | 15,591,651 | | | | 3,394,011 | | | | (56,422,559 | ) | | | 59,971,997 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net increase (decrease) in net assets resulting from operations | | | 82,070,426 | | | | 36,041,954 | | | | (31,462,173 | ) | | | 110,610,014 | |
| | | | | | | | | | | | | | | | |
| | | | |
Dividends and Distributions to Shareholders from: | | | | | | | | | | | | | | | | |
Distributable earnings*: | | | | | | | | | | | | | | | | |
Class A | | | (561,554 | ) | | | (700,572 | ) | | | (546,784 | ) | | | (167,474 | ) |
Class C | | | (1,203,061 | ) | | | (1,651,789 | ) | | | (1,499,301 | ) | | | (368,063 | ) |
Institutional Class | | | (51,991,595 | ) | | | (44,780,382 | ) | | | (39,365,210 | ) | | | (12,425,087 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| | | (53,756,210 | ) | | | (47,132,743 | ) | | | (41,411,295 | ) | | | (12,960,624 | ) |
| | | | | | | | | | | | | | | | |
Capital Share Transactions: | | | | | | | | | | | | | | | | |
Proceeds from shares sold: | | | | | | | | | | | | | | | | |
Class A | | | 1,751,281 | | | | 2,691,823 | | | | 330,547 | | | | 425,861 | |
Class C | | | 5,847,263 | | | | 5,853,573 | | | | 729,533 | | | | 788,640 | |
Institutional Class | | | 648,954,727 | | | | 410,586,301 | | | | 103,927,530 | | | | 118,448,217 | |
Net asset value of shares issued upon reinvestment of dividends and distributions: | | | | | | | | | | | | | | | | |
Class A | | | 560,310 | | | | 697,909 | | | | 543,866 | | | | 166,852 | |
Class C | | | 1,198,602 | | | | 1,650,329 | | | | 1,496,898 | | | | 367,589 | |
Institutional Class | | | 51,943,066 | | | | 44,744,263 | | | | 39,321,117 | | | | 12,414,824 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | 710,255,249 | | | | 466,224,198 | | | | 146,349,491 | | | | 132,611,983 | |
| | | | | | | | | | | | | | | | |
Cost of shares redeemed: | | | | | | | | | | | | | | | | |
Class A | | | (6,131,707 | ) | | | (6,985,182 | ) | | | (1,312,596 | ) | | | (2,050,607 | ) |
Class C | | | (20,944,368 | ) | | | (26,057,224 | ) | | | (5,447,612 | ) | | | (7,599,191 | ) |
Institutional Class | | | (360,410,926 | ) | | | (287,504,444 | ) | | | (179,436,993 | ) | | | (117,583,144 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| | | (387,487,001 | ) | | | (320,546,850 | ) | | | (186,197,201 | ) | | | (127,232,942 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Increase (decrease) in net assets derived from capital share transactions | | | 322,768,248 | | | | 145,677,348 | | | | (39,847,710 | ) | | | 5,379,041 | |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets | | | 351,082,464 | | | | 134,586,559 | | | | (112,721,178 | ) | | | 103,028,431 | |
Net Assets: | | | | | | | | | | | | | | | | |
Beginning of year | | | 2,017,737,652 | | | | 1,883,151,093 | | | | 666,683,769 | | | | 563,655,338 | |
| | | | | | | | | | | | | | | | |
| | | | |
End of year1 | | $ | 2,368,820,116 | | | $ | 2,017,737,652 | | | $ | 553,962,591 | | | $ | 666,683,769 | |
| | | | | | | | | | | | | | | | |
| 1 | Net Assets – End of year includes undistributed net investment income of $10,301,910 and $2,168,493 in 2018 for Optimum Fixed Income Fund and Optimum International Fund. The Securities and Exchange Commission eliminated the requirement to disclose undistributed (distributions in excess of) net investment income in 2018. |
| * | For the year ended March 31, 2019, the Funds have adopted amendments to RegulationS-X (see Note 13 in “Notes to financial statements”). For the year ended March 31, 2018, the dividends and distributions to shareholders were as follows: |
| | | | | | |
| | | Optimum Fixed Income Fund | | |
| | | | | Institutional |
| | | Class A | | Class C | | Class |
Dividends from net investment income | | $(700,572) | | $(1,651,789) | | $(44,780,382) |
| | | Optimum International Fund | | |
| | | | | | | Institutional |
| | | Class A | | Class C | | Class |
Dividends from net investment income | | $ (71,145) | | $ (38,744) | | $(6,067,099) |
Distributions from net realized gain | | (96,329) | | 329,319 | | (6,357,988) |
See accompanying notes, which are an integral part of the financial statements.
Statements of changes in net assets
Optimum Fund Trust
| | | | | | | | | | | | | | | | |
| | | Optimum Large Cap Growth Fund | | | Optimum Large Cap Value Fund | |
| | | Year ended | | | Year ended | |
| | | 3/31/19 | | | 3/31/18 | | | 3/31/19 | | | 3/31/18 | |
Increase (Decrease) in Net Assets from Operations: | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 17,218 | | | $ | (2,134,237 | ) | | $ | 21,624,464 | | | $ | 17,479,787 | |
Net realized gain | | | 146,317,831 | | | | 275,470,600 | | | | 23,082,346 | | | | 40,246,291 | |
Net change in unrealized appreciation (depreciation) | | | 52,506,384 | | | | 52,227,833 | | | | 14,950,371 | | | | 60,004,220 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net increase in net assets resulting from operations | | | 198,841,433 | | | | 325,564,196 | | | | 59,657,181 | | | | 117,730,298 | |
| | | | | | | | | | | | | | | | |
| | | | |
Dividends and Distributions to Shareholders from: | | | | | | | | | | | | | | | | |
Distributable earnings*: | | | | | | | | | | | | | | | | |
Class A | | | (3,720,629 | ) | | | (5,495,119 | ) | | | (928,291 | ) | | | (1,493,327 | ) |
Class C | | | (12,410,195 | ) | | | (19,625,204 | ) | | | (2,178,499 | ) | | | (4,227,847 | ) |
Institutional Class | | | (176,632,153 | ) | | | (240,785,863 | ) | | | (59,491,242 | ) | | | (74,148,325 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| | | (192,762,977 | ) | | | (265,906,186 | ) | | | (62,598,032 | ) | | | (79,869,499 | ) |
| | | | | | | | | | | | | | | | |
Capital Share Transactions: | | | | | | | | | | | | | | | | |
Proceeds from shares sold: | | | | | | | | | | | | | | | | |
Class A | | | 663,486 | | | | 1,294,218 | | | | 761,830 | | | | 1,327,875 | |
Class C | | | 985,223 | | | | 1,816,781 | | | | 1,550,682 | | | | 2,091,578 | |
Institutional Class | | | 256,614,320 | | | | 259,275,981 | | | | 265,479,114 | | | | 257,769,560 | |
Net asset value of shares issued upon reinvestment of dividends and distributions: | | | | | | | | | | | | | | | | |
Class A | | | 3,717,465 | | | | 5,479,590 | | | | 927,982 | | | | 1,489,597 | |
Class C | | | 12,385,912 | | | | 19,589,493 | | | | 2,168,977 | | | | 4,218,812 | |
Institutional Class | | | 176,362,602 | | | | 240,538,379 | | | | 59,415,403 | | | | 74,082,666 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | 450,729,008 | | | | 527,994,442 | | | | 330,303,988 | | | | 340,980,088 | |
| | | | | | | | | | | | | | | | |
Cost of shares redeemed: | | | | | | | | | | | | | | | | |
Class A | | | (6,759,803 | ) | | | (7,970,218 | ) | | | (4,397,534 | ) | | | (6,031,113 | ) |
Class C | | | (24,946,229 | ) | | | (29,888,435 | ) | | | (16,899,124 | ) | | | (22,154,334 | ) |
Institutional Class | | | (489,190,001 | ) | | | (295,254,850 | ) | | | (219,748,830 | ) | | | (211,048,849 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| | | (520,896,033 | ) | | | (333,113,503 | ) | | | (241,045,488 | ) | | | (239,234,296 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Increase (decrease) in net assets derived from capital share transactions | | | (70,167,025 | ) | | | 194,880,939 | | | | 89,258,500 | | | | 101,745,792 | |
| | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets | | | (64,088,569 | ) | | | 254,538,949 | | | | 86,317,649 | | | | 139,606,591 | |
Net Assets: | | | | | | | | | | | | | | | | |
Beginning of year | | | 1,740,255,422 | | | | 1,485,716,473 | | | | 1,481,562,504 | | | | 1,341,955,913 | |
| | | | | | | | | | | | | | | | |
| | | | |
End of year1 | | $ | 1,676,166,853 | | | $ | 1,740,255,422 | | | $ | 1,567,880,153 | | | $ | 1,481,562,504 | |
| | | | | | | | | | | | | | | | |
| 1 | Net Assets - There were no undistributed net investment income for Optimum Large Cap Growth Fund and $4,123,503 in 2018 for Optimum Large Cap Value Fund. The Securities Exchange Commission eliminated the requirement to disclose undistributed (distributions in excess of) net investment income in 2018. |
| * | For the year ended March 31, 2019, the Funds have adopted amendments to RegulationS-X (see Note 13 in “Notes to financial statements”). For the year ended March 31, 2018, the dividends and distributions to shareholders were as follows: |
| | | | | | |
| | | Optimum Large Cap Growth Fund | | |
| | | | | | | Institutional |
| | | Class A | | Class C | | Class |
Distributions from net realized gain | | $(5,495,119) | | $(19,625,204) | | $(240,785,863) |
| | | Optimum Large Cap Value Fund | | |
| | | | | | | Institutional |
| | | Class A | | Class C | | Class |
Dividends from net investment income | | $ (273,497) | | $ (256,730) | | $ (16,122,671) |
Distributions from net realized gain | | (1,219,830) | | (3,971,117) | | (58,025,654) |
See accompanying notes, which are an integral part of the financial statements.
126
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Optimum Small-Mid Cap Growth Fund | | Optimum Small-Mid Cap Value Fund |
| | | | | Year ended | | Year ended |
| | | 3/31/19 | | 3/31/18 | | 3/31/19 | | 3/31/18 |
Increase (Decrease) in Net Assets from Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | | | | $ | (4,658,161 | ) | | | | | | | | $ | (4,125,174 | ) | | | | | | | | $ | 5,479,260 | | | | | | | | | $ | 2,703,854 | |
Net realized gain | | | | | | | | | 61,283,820 | | | | | | | | | | 69,241,196 | | | | | | | | | | 26,854,009 | | | | | | | | | | 26,596,406 | |
Net change in unrealized appreciation (depreciation) | | | | | | | | | (9,645,134 | ) | | | | | | | | | 31,070,292 | | | | | | | | | | (53,926,698 | ) | | | | | | | | | (8,877,449 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | | | | | | | 46,980,525 | | | | | | | | | | 96,186,314 | | | | | | | | | | (21,593,429 | ) | | | | | | | | | 20,422,811 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Dividends and Distributions to Shareholders from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributable earnings*: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | (928,456 | ) | | | | | | | | | (236,782 | ) | | | | | | | | | (242,207 | ) | | | | | | | | | (215,457 | ) |
Class C | | | | | | | | | (3,041,672 | ) | | | | | | | | | (835,216 | ) | | | | | | | | | (753,203 | ) | | | | | | | | | (702,964 | ) |
Institutional Class | | | | | | | | | (85,738,436 | ) | | | | | | | | | (19,412,135 | ) | | | | | | | | | (35,271,695 | ) | | | | | | | | | (22,502,002 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | (89,708,564 | ) | | | | | | | | | (20,484,133 | ) | | | | | | | | | (36,267,105 | ) | | | | | | | | | (23,420,423 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from shares sold: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | 160,509 | | | | | | | | | | 270,437 | | | | | | | | | | 121,099 | | | | | | | | | | 223,637 | |
Class C | | | | | | | | | 213,105 | | | | | | | | | | 348,498 | | | | | | | | | | 210,799 | | | | | | | | | | 363,232 | |
Institutional Class | | | | | | | | | 84,994,195 | | | | | | | | | | 80,505,865 | | | | | | | | | | 168,820,113 | | | | | | | | | | 84,337,853 | |
Net asset value of shares issued upon reinvestment of dividends and distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | 926,148 | | | | | | | | | | 235,651 | | | | | | | | | | 241,981 | | | | | | | | | | 214,986 | |
Class C | | | | | | | | | 3,037,941 | | | | | | | | | | 834,362 | | | | | | | | | | 752,225 | | | | | | | | | | 702,150 | |
Institutional Class | | | | | | | | | 85,636,988 | | | | | | | | | | 19,396,388 | | | | | | | | | | 35,239,137 | | | | | | | | | | 22,481,400 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | 174,968,886 | | | | | | | | | | 101,591,201 | | | | | | | | | | 205,385,354 | | | | | | | | | | 108,323,258 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | (1,252,045 | ) | | | | | | | | | (1,216,862 | ) | | | | | | | | | (585,193 | ) | | | | | | | | | (841,912 | ) |
Class C | | | | | | | | | (3,872,832 | ) | | | | | | | | | (4,252,643 | ) | | | | | | | | | (2,290,436 | ) | | | | | | | | | (3,124,350 | ) |
Institutional Class | | | | | | | | | (130,574,910 | ) | | | | | | | | | (97,830,534 | ) | | | | | | | | | (83,755,221 | ) | | | | | | | | | (67,540,018 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | (135,699,787 | ) | | | | | | | | | (103,300,039 | ) | | | | | | | | | (86,630,850 | ) | | | | | | | | | (71,506,280 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Increase (decrease) in net assets derived from capital share transactions | | | | | | | | | 39,269,099 | | | | | | | | | | (1,708,838 | ) | | | | | | | | | 118,754,504 | | | | | | | | | | 36,816,978 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets | | | | | | | | | (3,458,940 | ) | | | | | | | | | 73,993,343 | | | | | | | | | | 60,893,970 | | | | | | | | | | 33,819,366 | |
Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of year | | | | | | | | | 516,233,422 | | | | | | | | | | 442,240,079 | | | | | | | | | | 458,693,724 | | | | | | | | | | 424,874,358 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
End of year1 | | | | | | | | $ | 512,774,482 | | | | | | | | | $ | 516,233,422 | | | | | | | | | $ | 519,587,694 | | | | | | | | | $ | 458,693,724 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 1 | Net Assets – There were no undistributed net investment income for OptimumSmall-Mid Cap Growth Fund and $1,372,317 in 2018 for OptimumSmall-Mid Cap Value Fund. The Securities and Exchange Commission eliminated the requirement to disclose undistributed (distributions in excess of) net investment income in 2018. |
| * | For the year ended March 31, 2019, the Fund has adopted amendments to RegulationS-X (see Note 12 in “Notes to financial statements”). For the year ended March 31, 2018, the dividends and distributions to shareholders were as follows: |
| | | | | | | | | | | | |
| | | Optimum Small-Mid Cap Growth Fund | |
| | | | | | | | | Institutional | |
| | | Class A | | | Class C | | | Class | |
Distributions from net realized gains | | $ | (236,782 | ) | | $ | (835,216 | ) | | $ | (19,412,135 | ) |
| | | OptimumSmall-Mid Cap Value Fund | |
| | | | | | | | | Institutional | |
| | | Class A | | | Class C | | | Class | |
Dividends from net investment income | | $ | (20,465 | ) | | $ | — | | | $ | (3,036,210 | ) |
Distributions from net realized gains | | | (194,992 | ) | | | (702,964 | ) | | | (19,465,792 | ) |
|
| See accompanying notes, which are an integral part of the financial statements. | |
Financial highlights
Optimum Fixed Income Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended |
| | | | | |
| | | 3/31/19 | | 3/31/18 | | 3/31/17 | | 3/31/16 | | 3/31/15 |
Net asset value, beginning of period | | | $ | 9.35 | | | | $ | 9.39 | | | | $ | 9.37 | | | | $ | 9.72 | | | | $ | 9.54 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | | 0.23 | | | | | 0.22 | | | | | 0.20 | | | | | 0.20 | | | | | 0.20 | |
Net realized and unrealized gain (loss) | | | | 0.08 | | | | | (0.05 | ) | | | | — | 2 | | | | (0.28 | ) | | | | 0.20 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | | 0.31 | | | | | 0.17 | | | | | 0.20 | | | | | (0.08 | ) | | | | 0.40 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | (0.20 | ) | | | | (0.21 | ) | | | | (0.18 | ) | | | | (0.25 | ) | | | | (0.22 | ) |
Net realized gain | | | | — | | | | | — | | | | | — | | | | | (0.02 | ) | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | | (0.20 | ) | | | | (0.21 | ) | | | | (0.18 | ) | | | | (0.27 | ) | | | | (0.22 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | | $ | 9.46 | | | | | 9.35 | | | | | 9.39 | | | | | 9.37 | | | | | 9.72 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return3 | | | | 3.37% | | | | | 1.81% | | | | | 2.03% | | | | | (0.63% | ) | | | | 4.21% | |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | | $ | 26,613 | | | | $ | 30,150 | | | | $ | 33,838 | | | | $ | 39,545 | | | | $ | 43,144 | |
Ratio of expenses to average net assets | | | | 1.08% | | | | | 1.10% | | | | | 1.17% | | | | | 1.23% | | | | | 1.17% | |
Ratio of expenses to average net assets prior to fees waived | | | | 1.08% | | | | | 1.10% | | | | | 1.18% | | | | | 1.23% | | | | | 1.17% | |
Ratio of net investment income to average net assets | | | | 2.43% | | | | | 2.29% | | | | | 2.12% | | | | | 2.13% | | | | | 2.11% | |
Ratio of net investment income to average net assets prior to fees waived | | | | 2.43% | | | | | 2.29% | | | | | 2.11% | | | | | 2.13% | | | | | 2.11% | |
Portfolio turnover | | | | 453% | | | | | 403% | | | | | 419% | | | | | 536% | | | | | 482%4 | |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | The amount is less than $0.005 per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during some of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 4 | As a result of the addition of Delaware Management Company’s diversified floating rate investment strategy and Pacific Investment Management Company, LLC’slow-duration investment strategy on Feb. 1, 2014, to the Fund’s principal investment strategy, the Fund’s portfolio turnover rate increased substantially during the year ended March 31, 2015. |
See accompanying notes, which are an integral part of the financial statements.
128
Optimum Fixed Income Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | | |
| | | 3/31/19 | | | 3/31/18 | | | 3/31/17 | | | 3/31/16 | | | 3/31/15 | |
Net asset value, beginning of period | | $ | 9.34 | | | $ | 9.38 | | | $ | 9.37 | | | $ | 9.71 | | | $ | 9.53 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | 0.16 | | | | 0.15 | | | | 0.13 | | | | 0.13 | | | | 0.13 | |
Net realized and unrealized gain (loss) | | | 0.07 | | | | (0.05 | ) | | | (0.01 | ) | | | (0.27 | ) | | | 0.20 | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.23 | | | | 0.10 | | | | 0.12 | | | | (0.14 | ) | | | 0.33 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.12 | ) | | | (0.14 | ) | | | (0.11 | ) | | | (0.18 | ) | | | (0.15 | ) |
Net realized gain | | | — | | | | — | | | | — | | | | (0.02 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | (0.12 | ) | | | (0.14 | ) | | | (0.11 | ) | | | (0.20 | ) | | | (0.15 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | $ | 9.45 | | | $ | 9.34 | | | $ | 9.38 | | | $ | 9.37 | | | $ | 9.71 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | 2.52% | | | | 1.06% | | | | 1.27% | | | | (1.39% | ) | | | 3.44% | |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | $ | 92,295 | | | $ | 105,194 | | | $ | 124,024 | | | $ | 153,266 | | | $ | 166,154 | |
Ratio of expenses to average net assets | | | 1.83% | | | | 1.85% | | | | 1.92% | | | | 1.98% | | | | 1.92% | |
Ratio of expenses to average net assets prior to fees waived | | | 1.83% | | | | 1.85% | | | | 1.93% | | | | 1.98% | | | | 1.92% | |
Ratio of net investment income to average net assets | | | 1.68% | | | | 1.54% | | | | 1.37% | | | | 1.38% | | | | 1.36% | |
Ratio of net investment income to average net assets prior to fees waived | | | 1.68% | | | | 1.54% | | | | 1.36% | | | | 1.38% | | | | 1.36% | |
Portfolio turnover | | | 453% | | | | 403% | | | | 419% | | | | 536% | | | | 482%3 | |
| |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during some of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 3 | As a result of the addition of Delaware Management Company’s diversified floating rate investment strategy and Pacific Investment Management Company, LLC’slow-duration investment strategy on Feb. 1, 2014, to the Fund’s principal investment strategy, the Fund’s portfolio turnover rate increased substantially during the year ended March 31, 2015. |
See accompanying notes, which are an integral part of the financial statements.
Financial highlights
Optimum Fixed Income Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended |
| | | | | |
| | | 3/31/19 | | 3/31/18 | | 3/31/17 | | 3/31/16 | | 3/31/15 |
Net asset value, beginning of period | | | $ | 9.34 | | | | $ | 9.39 | | | | $ | 9.37 | | | | $ | 9.72 | | | | $ | 9.54 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | | 0.25 | | | | | 0.24 | | | | | 0.23 | | | | | 0.23 | | | | | 0.23 | |
Net realized and unrealized gain (loss) | | | | 0.08 | | | | | (0.05 | ) | | | | (0.01 | ) | | | | (0.28 | ) | | | | 0.19 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | | 0.33 | | | | | 0.19 | | | | | 0.22 | | | | | (0.05 | ) | | | | 0.42 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | (0.22 | ) | | | | (0.24 | ) | | | | (0.20 | ) | | | | (0.28 | ) | | | | (0.24 | ) |
Net realized gain | | | | — | | | | | — | | | | | — | | | | | (0.02 | ) | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | | (0.22 | ) | | | | (0.24 | ) | | | | (0.20 | ) | | | | (0.30 | ) | | | | (0.24 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | | $ | 9.45 | | | | $ | 9.34 | | | | $ | 9.39 | | | | $ | 9.37 | | | | $ | 9.72 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | | 3.65% | | | | | 1.96% | | | | | 2.40% | | | | | (0.48%) | | | | | 4.47% | |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | | $ | 2,249,912 | | | | $ | 1,882,394 | | | | $ | 1,725,289 | | | | $ | 1,892,775 | | | | $ | 1,826,156 | |
Ratio of expenses to average net assets | | | | 0.83% | | | | | 0.85% | | | | | 0.92% | | | | | 0.98% | | | | | 0.92% | |
Ratio of expenses to average net assets prior to fees waived | | | | 0.83% | | | | | 0.85% | | | | | 0.93% | | | | | 0.98% | | | | | 0.92% | |
Ratio of net investment income to average net assets | | | | 2.68% | | | | | 2.54% | | | | | 2.37% | | | | | 2.38% | | | | | 2.36% | |
Ratio of net investment income to average net assets prior to fees waived | | | | 2.68% | | | | | 2.54% | | | | | 2.36% | | | | | 2.38% | | | | | 2.36% | |
Portfolio turnover | | | | 453% | | | | | 403% | | | | | 419% | | | | | 536% | | | | | 482%3 | |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during some of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 3 | As a result of the addition of Delaware Management Company’s diversified floating rate investment strategy and Pacific Investment Management Company, LLC ’slow-duration investment strategy on Feb. 1, 2014, to the Fund’s principal investment strategy, the Fund’s portfolio turnover rate increased substantially during the year ended March 31, 2015. |
See accompanying notes, which are an integral part of the financial statements.
130
Optimum International Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended |
| | | | | |
| | | 3/31/19 | | 3/31/18 | | 3/31/17 | | 3/31/16 | | 3/31/15 |
Net asset value, beginning of period | | | $ | 14.42 | | | | $ | 12.27 | | | | $ | 10.95 | | | | $ | 11.66 | | | | $ | 12.57 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | | 0.17 | | | | | 0.12 | | | | | 0.11 | | | | | 0.08 | | | | | 0.06 | |
Net realized and unrealized gain (loss) | | | | (1.00 | ) | | | | 2.29 | | | | | 1.31 | | | | | (0.73 | ) | | | | (0.84 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | | (0.83 | ) | | | | 2.41 | | | | | 1.42 | | | | | (0.65 | ) | | | | (0.78 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | (0.18 | ) | | | | (0.11 | ) | | | | (0.10 | ) | | | | (0.06 | ) | | | | (0.13 | ) |
Net realized gain | | | | (0.82 | ) | | | | (0.15 | ) | | | | — | | | | | — | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | | (1.00 | ) | | | | (0.26 | ) | | | | (0.10 | ) | | | | (0.06 | ) | | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | | $ | 12.59 | | | | $ | 14.42 | | | | $ | 12.27 | | | | $ | 10.95 | | | | $ | 11.66 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | | (5.33% | ) | | | | 19.74% | | | | | 13.08% | | | | | (5.58% | ) | | | | (6.25% | ) |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | | $ | 7,275 | | | | $ | 8,704 | | | | $ | 8,680 | | | | $ | 9,117 | | | | $ | 10,291 | |
Ratio of expenses to average net assets | | | | 1.37% | | | | | 1.36% | | | | | 1.48% | | | | | 1.56% | | | | | 1.47% | |
Ratio of net investment income to average net assets | | | | 1.30% | | | | | 0.90% | | | | | 0.93% | | | | | 0.74% | | | | | 0.51% | |
Portfolio turnover | | | | 63% | | | | | 52% | | | | | 68% | | | | | 47% | | | | | 117% | |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. |
See accompanying notes, which are an integral part of the financial statements.
Financial highlights
Optimum International Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended |
| | | | | |
| | | 3/31/19 | | 3/31/18 | | 3/31/17 | | 3/31/16 | | 3/31/15 |
Net asset value, beginning of period | | | $ | 14.06 | | | | $ | 11.98 | | | | $ | 10.69 | | | | $ | 11.41 | | | | $ | 12.29 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)1 | | | | 0.07 | | | | | 0.02 | | | | | 0.02 | | | | | — | 2 | | | | (0.03 | ) |
Net realized and unrealized gain (loss) | | | | (0.98 | ) | | | | 2.23 | | | | | 1.30 | | | | | (0.72 | ) | | | | (0.83 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | | (0.91 | ) | | | | 2.25 | | | | | 1.32 | | | | | (0.72 | ) | | | | (0.86 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | (0.06 | ) | | | | (0.02 | ) | | | | (0.03 | ) | | | | — | | | | | (0.02 | ) |
Net realized gain | | | | (0.82 | ) | | | | (0.15 | ) | | | | — | | | | | — | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | | (0.88 | ) | | | | (0.17 | ) | | | | (0.03 | ) | | | | — | | | | | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | | $ | 12.27 | | | | $ | 14.06 | | | | $ | 11.98 | | | | $ | 10.69 | | | | $ | 11.41 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return3 | | | | (6.07% | ) | | | | 18.82% | | | | | 12.32% | | | | | (6.31% | ) | | | | (7.00% | ) |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | | $ | 21,763 | | | | $ | 28,046 | | | | $ | 29,544 | | | | $ | 31,777 | | | | $ | 35,996 | |
Ratio of expenses to average net assets | | | | 2.12% | | | | | 2.11% | | | | | 2.23% | | | | | 2.31% | | | | | 2.22% | |
Ratio of net investment income (loss) to average net assets | | | | 0.55% | | | | | 0.15% | | | | | 0.18% | | | | | (0.01% | ) | | | | (0.24% | ) |
Portfolio turnover | | | | 63% | | | | | 52% | | | | | 68% | | | | | 47% | | | | | 117% | |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | Amount is less than $(0.005) per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflect a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
132
Optimum International Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | | |
| | | 3/31/19 | | | 3/31/18 | | | 3/31/17 | | | 3/31/16 | | | 3/31/15 | |
Net asset value, beginning of period | | $ | 14.52 | | | $ | 12.35 | | | $ | 11.02 | | | $ | 11.74 | | | $ | 12.66 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | 0.21 | | | | 0.16 | | | | 0.14 | | | | 0.11 | | | | 0.09 | |
Net realized and unrealized gain (loss) | | | (1.02 | ) | | | 2.31 | | | | 1.32 | | | | (0.74 | ) | | | (0.85 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.81 | ) | | | 2.47 | | | | 1.46 | | | | (0.63 | ) | | | (0.76 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.21 | ) | | | (0.15 | ) | | | (0.13 | ) | | | (0.09 | ) | | | (0.16 | ) |
Net realized gain | | | (0.82 | ) | | | (0.15 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | (1.03 | ) | | | (0.30 | ) | | | (0.13 | ) | | | (0.09 | ) | | | (0.16 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | $ | 12.68 | | | $ | 14.52 | | | $ | 12.35 | | | $ | 11.02 | | | $ | 11.74 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | (5.09% | ) | | | 20.05% | | | | 13.36% | | | | (5.38% | ) | | | (6.04% | ) |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | $ | 524,925 | | | $ | 629,934 | | | $ | 525,431 | | | $ | 542,055 | | | $ | 477,884 | |
Ratio of expenses to average net assets | | | 1.12% | | | | 1.11% | | | | 1.23% | | | | 1.31% | | | | 1.22% | |
Ratio of net investment income to average net assets | | | 1.55% | | | | 1.15% | | | | 1.18% | | | | 0.99% | | | | 0.76% | |
Portfolio turnover | | | 63% | | | | 52% | | | | 68% | | | | 47% | | | | 117% | |
| |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflect a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes, which are an integral part of the financial statements.
Financial highlights
Optimum Large Cap Growth Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | | |
| | | 3/31/19 | | | 3/31/18 | | | 3/31/17 | | | 3/31/16 | | | 3/31/15 | |
Net asset value, beginning of period | | $ | 17.22 | | | $ | 16.84 | | | $ | 14.97 | | | $ | 17.00 | | | $ | 16.39 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss1 | | | (0.03 | ) | | | (0.06 | ) | | | (0.06 | ) | | | (0.10 | ) | | | (0.08 | ) |
Net realized and unrealized gain (loss) | | | 1.82 | | | | 3.70 | | | | 2.52 | | | | (0.20 | ) | | | 2.71 | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 1.79 | | | | 3.64 | | | | 2.46 | | | | (0.30 | ) | | | 2.63 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | |
Net realized gain | | | (2.31 | ) | | | (3.26 | ) | | | (0.59 | ) | | | (1.73 | ) | | | (2.02 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | (2.31 | ) | | | (3.26 | ) | | | (0.59 | ) | | | (1.73 | ) | | | (2.02 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | $ | 16.70 | | | $ | 17.22 | | | $ | 16.84 | | | $ | 14.97 | | | $ | 17.00 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | 11.60% | | | | 22.17% | | | | 16.83% | | | | (2.27% | ) | | | 17.27% | |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | $ | 29,605 | | | $ | 32,254 | | | $ | 32,215 | | | $ | 33,787 | | | $ | 40,790 | |
Ratio of expenses to average net assets | | | 1.25% | | | | 1.26% | | | | 1.35% | | | | 1.42% | | | | 1.37% | |
Ratio of expenses to average net assets prior to fees waived | | | 1.25% | | | | 1.26% | | | | 1.38% | | | | 1.44% | | | | 1.37% | |
Ratio of net investment loss to average net assets | | | (0.19% | ) | | | (0.31% | ) | | | (0.35% | ) | | | (0.62% | ) | | | (0.50% | ) |
Ratio of net investment loss to average net assets prior to fees waived | | | (0.19% | ) | | | (0.31% | ) | | | (0.38% | ) | | | (0.64% | ) | | | (0.50% | ) |
Portfolio turnover | | | 25% | | | | 77%3 | | | | 52% | | | | 88% | | | | 86% | |
| |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during some of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 3 | As a result of ClearBridge Investments LLC replacing Fred Alger Management Inc. as one of thesub-advisors to Optimum Large Cap Growth Fund during the Fund’s fiscal year ending March 31, 2018, the Fund’s portfolio turnover rate increased during the year ended March 31, 2018. |
See accompanying notes, which are an integral part of the financial statements.
134
Optimum Large Cap Growth Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | | |
| | | 3/31/19 | | | 3/31/18 | | | 3/31/17 | | | 3/31/16 | | | 3/31/15 | |
Net asset value, beginning of period | | $ | 14.62 | | | $ | 14.81 | | | $ | 13.34 | | | $ | 15.44 | | | $ | 15.16 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss1 | | | (0.14 | ) | | | (0.17 | ) | | | (0.15 | ) | | | (0.20 | ) | | | (0.19 | ) |
Net realized and unrealized gain (loss) | | | 1.51 | | | | 3.24 | | | | 2.21 | | | | (0.17 | ) | | | 2.49 | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 1.37 | | | | 3.07 | | | | 2.06 | | | | (0.37 | ) | | | 2.30 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | |
Net realized gain | | | (2.31 | ) | | | (3.26 | ) | | | (0.59 | ) | | | (1.73 | ) | | | (2.02 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | (2.31 | ) | | | (3.26 | ) | | | (0.59 | ) | | | (1.73 | ) | | | (2.02 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | $ | 13.68 | | | $ | 14.62 | | | $ | 14.81 | | | $ | 13.34 | | | $ | 15.44 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | 10.74% | | | | 21.30% | | | | 15.88% | | | | (2.98% | ) | | | 16.44% | |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | $ | 83,010 | | | $ | 97,658 | | | $ | 105,082 | | | $ | 114,907 | | | $ | 137,892 | |
Ratio of expenses to average net assets | | | 2.00% | | | | 2.01% | | | | 2.10% | | | | 2.17% | | | | 2.12% | |
Ratio of expenses to average net assets prior to fees waived | | | 2.00% | | | | 2.01% | | | | 2.13% | | | | 2.19% | | | | 2.12% | |
Ratio of net investment loss to average net assets | | | (0.94% | ) | | | (1.06% | ) | | | (1.10% | ) | | | (1.37% | ) | | | (1.25% | ) |
Ratio of net investment loss to average net assets prior to fees waived | | | (0.94% | ) | | | (1.06% | ) | | | (1.13% | ) | | | (1.39% | ) | | | (1.25% | ) |
Portfolio turnover | | | 25% | | | | 77%3 | | | | 52% | | | | 88% | | | | 86% | |
| |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during some of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 3 | As a result of ClearBridge Investments LLC replacing Fred Alger Management Inc. as one of thesub-advisors to Optimum Large Cap Growth Fund during the Fund’s fiscal year ending March 31, 2018, the Fund’s portfolio turnover rate increased during the year ended March 31, 2018. |
See accompanying notes, which are an integral part of the financial statements.
Financial highlights
Optimum Large Cap Growth Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended |
| | | 3/31/19 | | 3/31/18 | | 3/31/17 | | 3/31/16 | | 3/31/15 |
Net asset value, beginning of period | | | $ | 18.46 | | | | $ | 17.81 | | | | $ | 15.76 | | | | $ | 17.76 | | | | $ | 17.00 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)1 | | | | 0.01 | | | | | (0.01 | ) | | | | (0.02 | ) | | | | (0.06 | ) | | | | (0.04 | ) |
Net realized and unrealized gain (loss) | | | | 1.97 | | | | | 3.92 | | | | | 2.66 | | | | | (0.21 | ) | | | | 2.82 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | | 1.98 | | | | | 3.91 | | | | | 2.64 | | | | | (0.27 | ) | | | | 2.78 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized gain | | | | (2.31 | ) | | | | (3.26 | ) | | | | (0.59 | ) | | | | (1.73 | ) | | | | (2.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | | (2.31 | ) | | | | (3.26 | ) | | | | (0.59 | ) | | | | (1.73 | ) | | | | (2.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | | $ | 18.13 | | | | $ | 18.46 | | | | $ | 17.81 | | | | $ | 15.76 | | | | $ | 17.76 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | | 11.86% | | | | | 22.50% | | | | | 17.14% | | | | | (2.00% | ) | | | | 17.55% | |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | | $ | 1,563,552 | | | | $ | 1,610,343 | | | | $ | 1,348,419 | | | | $ | 1,356,335 | | | | $ | 1,413,059 | |
Ratio of expenses to average net assets | | | | 1.00% | | | | | 1.01% | | | | | 1.10% | | | | | 1.17% | | | | | 1.12% | |
Ratio of expenses to average net assets prior to fees waived | | | | 1.00% | | | | | 1.01% | | | | | 1.13% | | | | | 1.19% | | | | | 1.12% | |
Ratio of net investment income (loss) to average net assets | | | | 0.06% | | | | | (0.06% | ) | | | | (0.10% | ) | | | | (0.37% | ) | | | | (0.25% | ) |
Ratio of net investment income (loss) to average net assets prior to fees waived | | | | 0.06% | | | | | (0.06% | ) | | | | (0.13% | ) | | | | (0.39% | ) | | | | (0.25% | ) |
Portfolio turnover | | | | 25% | | | | | 77%3 | | | | | 52% | | | | | 88% | | | | | 86% | |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge.Total return during some of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 3 | As a result of ClearBridge Investments LLC replacing Fred Alger Management Inc. as one of thesub-advisors to Optimum Large Cap Growth Fund during the Fund’s fiscal year ending March 31, 2018, the Fund’s portfolio turnover rate increased during the year ended March 31, 2018. |
See accompanying notes, which are an integral part of the financial statements.
136
Optimum Large Cap Value Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended |
| | | 3/31/19 | | 3/31/18 | | 3/31/17 | | 3/31/16 | | 3/31/15 |
Net asset value, beginning of period | | | $ | 15.89 | | | | $ | 15.42 | | | | $ | 15.13 | | | | $ | 16.01 | | | | $ | 15.36 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | | 0.19 | | | | | 0.17 | | | | | 0.17 | | | | | 0.17 | | | | | 0.12 | |
Net realized and unrealized gain (loss) | | | | 0.38 | | | | | 1.19 | | | | | 2.04 | | | | | (0.89 | ) | | | | 0.70 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | | 0.57 | | | | | 1.36 | | | | | 2.21 | | | | | (0.72 | ) | | | | 0.82 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | (0.18 | ) | | | | (0.16 | ) | | | | (0.18 | ) | | | | (0.16 | ) | | | | (0.17 | ) |
Net realized gain | | | | (0.45 | ) | | | | (0.73 | ) | | | | (1.74 | ) | | | | — | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | | (0.63 | ) | | | | (0.89 | ) | | | | (1.92 | ) | | | | (0.16 | ) | | | | (0.17 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | | $ | 15.83 | | | | $ | 15.89 | | | | $ | 15.42 | | | | $ | 15.13 | | | | $ | 16.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | | 3.79% | | | | | 8.68% | | | | | 14.99% | | | | | (4.54% | ) | | | | 5.34% | |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | | $ | 23,742 | | | | $ | 26,448 | | | | $ | 28,739 | | | | $ | 30,502 | | | | $ | 35,952 | |
Ratio of expenses to average net assets | | | | 1.20% | | | | | 1.21% | | | | | 1.33% | | | | | 1.40% | | | | | 1.33% | |
Ratio of expenses to average net assets prior to fees waived | | | | 1.20% | | | | | 1.21% | | | | | 1.34% | | | | | 1.41% | | | | | 1.33% | |
Ratio of net investment income to average net assets | | | | 1.23% | | | | | 1.05% | | | | | 1.06% | | | | | 1.07% | | | | | 0.79% | |
Ratio of net investment income to average net assets prior to fees waived | | | | 1.23% | | | | | 1.05% | | | | | 1.05% | | | | | 1.06% | | | | | 0.79% | |
Portfolio turnover | | | | 22% | | | | | 25% | | | | | 82%3 | | | | | 39% | | | | | 35% | |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge.Total return during some of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 3 | As a result of Rothschild Asset Management Inc. replacing Herndon Capital Management, LLC as one of thesub-advisors to Optimum Large Cap Value Fund during the Fund’s fiscal year ending March 31, 2017, the Fund’s portfolio turnover rate increased substantially during the year ended March 31, 2017. |
See accompanying notes, which are an integral part of the financial statements.
Financial highlights
Optimum Large Cap Value Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended |
| | | 3/31/19 | | 3/31/18 | | 3/31/17 | | 3/31/16 | | 3/31/15 |
Net asset value, beginning of period | | | $ | 15.69 | | | | $ | 15.25 | | | | $ | 14.99 | | | | $ | 15.85 | | | | $ | 15.22 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | | 0.07 | | | | | 0.05 | | | | | 0.05 | | | | | 0.05 | | | | | 0.01 | |
Net realized and unrealized gain (loss) | | | | 0.38 | | | | | 1.17 | | | | | 2.01 | | | | | (0.87 | ) | | | | 0.67 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | | 0.45 | | | | | 1.22 | | | | | 2.06 | | | | | (0.82 | ) | | | | 0.68 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | (0.04 | ) | | | | (0.05 | ) | | | | (0.06 | ) | | | | (0.04 | ) | | | | (0.05 | ) |
Net realized gain | | | | (0.45 | ) | | | | (0.73 | ) | | | | (1.74 | ) | | | | — | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | | (0.49 | ) | | | | (0.78 | ) | | | | (1.80 | ) | | | | (0.04 | ) | | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | | $ | 15.65 | | | | $ | 15.69 | | | | $ | 15.25 | | | | $ | 14.99 | | | | $ | 15.85 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | | 3.05% | | | | | 7.82% | | | | | 14.13% | | | | | (5.19% | ) | | | | 4.48% | |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | | $ | 69,415 | | | | $ | 82,610 | | | | $ | 95,495 | | | | $ | 103,693 | | | | $ | 122,772 | |
Ratio of expenses to average net assets | | | | 1.95% | | | | | 1.96% | | | | | 2.08% | | | | | 2.15% | | | | | 2.08% | |
Ratio of expenses to average net assets prior to fees waived | | | | 1.95% | | | | | 1.96% | | | | | 2.09% | | | | | 2.16% | | | | | 2.08% | |
Ratio of net investment income to average net assets | | | | 0.48% | | | | | 0.30% | | | | | 0.31% | | | | | 0.32% | | | | | 0.04% | |
Ratio of net investment income to average net assets prior to fees waived | | | | 0.48% | | | | | 0.30% | | | | | 0.30% | | | | | 0.31% | | | | | 0.04% | |
Portfolio turnover | | | | 22% | | | | | 25% | | | | | 82%3 | | | | | 39% | | | | | 35% | |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge.Total return during some of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 3 | As a result of Rothschild Asset Management Inc. replacing Herndon Capital Management, LLC as one of thesub-advisors to Optimum Large Cap Value Fund during the Fund’s fiscal year ending March 31, 2017, the Fund’s portfolio turnover rate increased substantially during the year ended March 31, 2017. |
See accompanying notes, which are an integral part of the financial statements.
138
Optimum Large Cap Value Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | | |
| | | 3/31/19 | | | 3/31/18 | | | 3/31/17 | | | 3/31/16 | | | 3/31/15 | |
| | | | | |
Net asset value, beginning of period | | $ | 15.93 | | | $ | 15.46 | | | $ | 15.16 | | | $ | 16.04 | | | $ | 15.39 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | 0.23 | | | | 0.21 | | | | 0.20 | | | | 0.20 | | | | 0.17 | |
Net realized and unrealized gain (loss) | | | 0.38 | | | | 1.19 | | | | 2.06 | | | | (0.89 | ) | | | 0.69 | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.61 | | | | 1.40 | | | | 2.26 | | | | (0.69 | ) | | | 0.86 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.22 | ) | | | (0.20 | ) | | | (0.22 | ) | | | (0.19 | ) | | | (0.21 | ) |
Net realized gain | | | (0.45 | ) | | | (0.73 | ) | | | (1.74 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | (0.67 | ) | | | (0.93 | ) | | | (1.96 | ) | | | (0.19 | ) | | | (0.21 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | $ | 15.87 | | | $ | 15.93 | | | $ | 15.46 | | | $ | 15.16 | | | $ | 16.04 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | 4.08% | | | | 8.90% | | | | 15.30% | | | | (4.29% | ) | | | 5.60% | |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | $ | 1,474,723 | | | $ | 1,372,505 | | | $ | 1,217,722 | | | $ | 1,129,606 | | | $ | 1,146,123 | |
Ratio of expenses to average net assets | | | 0.95% | | | | 0.96% | | | | 1.08% | | | | 1.15% | | | | 1.08% | |
Ratio of expenses to average net assets prior to fees waived | | | 0.95% | | | | 0.96% | | | | 1.09% | | | | 1.16% | | | | 1.08% | |
Ratio of net investment income to average net assets | | | 1.48% | | | | 1.30% | | | | 1.31% | | | | 1.32% | | | | 1.04% | |
Ratio of net investment income to average net assets prior to fees waived | | | 1.48% | | | | 1.30% | | | | 1.30% | | | | 1.31% | | | | 1.04% | |
Portfolio turnover | | | 22% | | | | 25% | | | | 82%3 | | | | 39% | | | | 35% | |
|
| |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during some of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 3 | As a result of Rothschild Asset Management Inc. replacing Herndon Capital Management, LLC as one of thesub-advisors to Optimum Large Cap Value Fund during the Fund’s fiscal year ending March 31, 2017, the Fund’s portfolio turnover rate increased substantially during the year ended March 31, 2017. |
See accompanying notes, which are an integral part of the financial statements.
Financial highlights
OptimumSmall-Mid Cap Growth Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | | |
| | | 3/31/19 | | | 3/31/18 | | | 3/31/17 | | | 3/31/16 | | | 3/31/15 | |
| | | | | |
Net asset value, beginning of period | | $ | 15.51 | | | $ | 13.31 | | | $ | 10.95 | | | $ | 15.37 | | | $ | 15.57 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss1 | | | (0.17 | ) | | | (0.16 | ) | | | (0.14 | ) | | | (0.15 | ) | | | (0.16 | ) |
Net realized and unrealized gain (loss) | | | 1.20 | | | | 3.03 | | | | 2.50 | | | | (2.26 | ) | | | 1.44 | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 1.03 | | | | 2.87 | | | | 2.36 | | | | (2.41 | ) | | | 1.28 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | |
Return of capital | | | — | | | | — | | | | — | | | | — | 2 | | | — | |
Net realized gain | | | (3.11 | ) | | | (0.67 | ) | | | — | | | | (2.01 | ) | | | (1.48 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | (3.11 | ) | | | (0.67 | ) | | | — | | | | (2.01 | ) | | | (1.48 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | $ | 13.43 | | | $ | 15.51 | | | $ | 13.31 | | | $ | 10.95 | | | $ | 15.37 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return3 | | | 8.69% | | | | 21.88% | | | | 21.55% | | | | (16.77% | ) | | | 8.93% | |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | $ | 4,788 | | | $ | 5,414 | | | $ | 5,293 | | | $ | 5,040 | | | $ | 7,050 | |
Ratio of expenses to average net assets | | | 1.54% | | | | 1.55% | | | | 1.58% | | | | 1.66% | | | | 1.63% | |
Ratio of expenses to average net assets prior to fees waived | | | 1.65% | | | | 1.63% | | | | 1.79% | | | | 1.85% | | | | 1.77% | |
Ratio of net investment loss to average net assets | | | (1.11% | ) | | | (1.07% | ) | | | (1.16% | ) | | | (1.09% | ) | | | (1.09% | ) |
Ratio of net investment loss to average net assets prior to fees waived | | | (1.22% | ) | | | (1.15% | ) | | | (1.37% | ) | | | (1.28% | ) | | | (1.23% | ) |
Portfolio turnover | | | 82% | | | | 89% | | | | 180% | 4 | | | 104% | | | | 72% | |
|
| |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | For the year ended March 31, 2016, return of capital distribution of $108 for Class A calculated to a de minimis amount of $0.00 per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 4 | As a result of Peregrine Capital Management, LLC and Columbus Circle Investors replacing Columbia Wanger Asset Management and Wellington Management as thesub-advisors to OptimumSmall-Mid Cap Growth Fund during the Fund’s fiscal year ending March 31, 2017, the Fund’s portfolio turnover rate increased substantially during the year ended March 31, 2017. |
See accompanying notes, which are an integral part of the financial statements.
140
OptimumSmall-Mid Cap Growth Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | | | |
| | | 3/31/19 | | | 3/31/18 | | | 3/31/17 | | | 3/31/16 | | | 3/31/15 | |
| | | | | |
Net asset value, beginning of period | | $ | 13.32 | | | $ | 11.59 | | | $ | 9.61 | | | $ | 13.86 | | | $ | 14.29 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss1 | | | (0.24 | ) | | | (0.23 | ) | | | (0.20 | ) | | | (0.22 | ) | | | (0.25 | ) |
Net realized and unrealized gain (loss) | | | 0.97 | | | | 2.63 | | | | 2.18 | | | | (2.02 | ) | | | 1.30 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total from investment operations | | | 0.73 | | | | 2.40 | | | | 1.98 | | | | (2.24 | ) | | | 1.05 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | |
Return of capital | | | — | | | | — | | | | — | | | | — | 2 | | | — | |
Net realized gain | | | (3.11 | ) | | | (0.67 | ) | | | — | | | | (2.01 | ) | | | (1.48 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total dividends and distributions | | | (3.11 | ) | | | (0.67 | ) | | | — | | | | (2.01 | ) | | | (1.48 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | $ | 10.94 | | | $ | 13.32 | | | $ | 11.59 | | | $ | 9.61 | | | $ | 13.86 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return3 | | | 7.81% | | | | 21.06% | | | | 20.60% | | | | (17.39% | ) | | | 8.08% | |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | $ | 13,510 | | | $ | 15,925 | | | $ | 16,668 | | | $ | 16,972 | | | $ | 23,206 | |
Ratio of expenses to average net assets | | | 2.29% | | | | 2.30% | | | | 2.33% | | | | 2.41% | | | | 2.38% | |
Ratio of expenses to average net assets prior to fees waived | | | 2.40% | | | | 2.38% | | | | 2.54% | | | | 2.60% | | | | 2.52% | |
Ratio of net investment loss to average net assets | | | (1.86% | ) | | | (1.82% | ) | | | (1.91% | ) | | | (1.84% | ) | | | (1.84% | ) |
Ratio of net investment loss to average net assets prior to fees waived | | | (1.97% | ) | | | (1.90% | ) | | | (2.12% | ) | | | (2.03% | ) | | | (1.98% | ) |
Portfolio turnover | | | 82% | | | | 89% | | | | 180%4 | | | | 104% | | | | 72% | |
| |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | For the year ended March 31, 2016, return of capital distribution of $416 for Class C calculated to a de minimis amount of $0.00 per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 4 | As a result of Peregrine Capital Management, LLC and Columbus Circle Investors replacing Columbia Wanger Asset Management and Wellington Management as thesub-advisors to OptimumSmall-Mid Cap Growth Fund during the Fund’s fiscal year ending March 31, 2017, the Fund’s portfolio turnover rate increased substantially during the year ended March 31, 2017. |
See accompanying notes, which are an integral part of the financial statements.
Financial highlights
OptimumSmall-Mid Cap Growth Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | 3/31/19 | | | 3/31/18 | | | 3/31/17 | | | 3/31/16 | | | 3/31/15 | |
Net asset value, beginning of period | | $ | 16.63 | | | $ | 14.19 | | | $ | 11.65 | | | $ | 16.17 | | | $ | 16.27 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss1 | | | (0.14 | ) | | | (0.13 | ) | | | (0.12 | ) | | | (0.12 | ) | | | (0.13 | ) |
Net realized and unrealized gain (loss) | | | 1.31 | | | | 3.24 | | | | 2.66 | | | | (2.39 | ) | | | 1.51 | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 1.17 | | | | 3.11 | | | | 2.54 | | | | (2.51 | ) | | | 1.38 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | |
Return of capital | | | — | | | | — | | | | — | | | | — | 2 | | | — | |
Net realized gain | | | (3.11 | ) | | | (0.67 | ) | | | — | | | | (2.01 | ) | | | (1.48 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | (3.11 | ) | | | (0.67 | ) | | | — | | | | (2.01 | ) | | | (1.48 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | $ | 14.69 | | | $ | 16.63 | | | $ | 14.19 | | | $ | 11.65 | | | $ | 16.17 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return3 | | | 8.97% | | | | 22.22% | | | | 21.80% | | | | (16.54% | ) | | | 9.18% | |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | $ | 494,476 | | | $ | 494,894 | | | $ | 420,279 | | | $ | 440,683 | | | $ | 527,647 | |
Ratio of expenses to average net assets | | | 1.29% | | | | 1.30% | | | | 1.33% | | | | 1.41% | | | | 1.38% | |
Ratio of expenses to average net assets prior to fees waived | | | 1.40% | | | | 1.38% | | | | 1.54% | | | | 1.60% | | | | 1.52% | |
Ratio of net investment loss to average net assets | | | (0.86% | ) | | | (0.82% | ) | | | (0.91% | ) | | | (0.84% | ) | | | (0.84% | ) |
Ratio of net investment loss to average net assets prior to fees waived | | | (0.97% | ) | | | (0.90% | ) | | | (1.12% | ) | | | (1.03% | ) | | | (0.98% | ) |
Portfolio turnover | | | 82% | | | | 89% | | | | 180%4 | | | | 104% | | | | 72% | |
|
| | |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | For the year ended March 31, 2016, return of capital distribution of $8,916 for Institutional Class calculated to a de minimis amount of $0.00 per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 4 | As a result of Peregrine Capital Management, LLC and Columbus Circle Investors replacing Columbia Wanger Asset Management and Wellington Management as thesub-advisors to OptimumSmall-Mid Cap Growth Fund during the Fund’s fiscal year ending March 31, 2017, the Fund’s portfolio turnover rate increased substantially during the year ended March 31, 2017. |
See accompanying notes, which are an integral part of the financial statements.
142
OptimumSmall-Mid Cap Value Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | 3/31/19 | | | 3/31/18 | | | 3/31/17 | | | 3/31/16 | | | 3/31/15 | |
Net asset value, beginning of period | | $ | 13.66 | | | $ | 13.77 | | | $ | 11.53 | | | $ | 13.64 | | | $ | 14.88 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)1 | | | 0.11 | | | | 0.06 | | | | 0.08 | | | | (0.04 | ) | | | (0.09 | ) |
Net realized and unrealized gain (loss) | | | (0.69 | ) | | | 0.59 | | | | 2.21 | | | | (1.58 | ) | | | (0.03 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.58 | ) | | | 0.65 | | | | 2.29 | | | | (1.62 | ) | | | (0.12 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.06 | ) | | | (0.07 | ) | | | (0.05 | ) | | | — | | | | — | |
Return of capital | | | — | | | | — | | | | — | | | | — | 2 | | | — | |
Net realized gain | | | (0.88 | ) | | | (0.69 | ) | | | — | | | | (0.49 | ) | | | (1.12 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | (0.94 | ) | | | (0.76 | ) | | | (0.05 | ) | | | (0.49 | ) | | | (1.12 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | $ | 12.14 | | | $ | 13.66 | | | $ | 13.77 | | | $ | 11.53 | | | $ | 13.64 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return3 | | | (3.83% | ) | | | 4.59% | | | | 19.84% | | | | (11.96% | ) | | | (0.69% | ) |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | $ | 3,266 | | | $ | 3,856 | | | $ | 4,279 | | | $ | 4,302 | | | $ | 5,440 | |
Ratio of expenses to average net assets | | | 1.46% | | | | 1.48% | | | | 1.51% | | | | 1.61% | | | | 1.62% | |
Ratio of expenses to average net assets prior to fees waived | | | 1.54% | | | | 1.54% | | | | 1.71% | | | | 1.75% | | | | 1.68% | |
Ratio of net investment income (loss) to average net assets | | | 0.87% | | | | 0.40% | | | | 0.64% | | | | (0.35% | ) | | | (0.65% | ) |
Ratio of net investment income (loss) to average net assets prior to fees waived | | | 0.79% | | | | 0.34% | | | | 0.44% | | | | (0.49% | ) | | | (0.71% | ) |
Portfolio turnover | | | 32% | | | | 31% | | | | 30% | | | | 90%4 | | | | 31% | |
|
| | |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | For the year ended March 31, 2016, return of capital distribution of $325 for Class A calculated to a de minimis amount of $0.001 per share |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 4 | As a result of LSV Asset Management replacing The Delafield Group, a division of Tocqueville Asset Management L.P., and The Killen Group, Inc. as one of thesub-advisors to OptimumSmall-Mid Cap Value Fund during the Fund’s fiscal year ending March 31, 2016, the Fund’s portfolio turnover rate increased substantially during the year ended March 31, 2016. |
See accompanying notes, which are an integral part of the financial statements.
Financial highlights
OptimumSmall-Mid Cap Value Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | 3/31/19 | | | 3/31/18 | | | 3/31/17 | | | 3/31/16 | | | 3/31/15 | |
Net asset value, beginning of period | | $ | 12.01 | | | $ | 12.21 | | | $ | 10.27 | | | $ | 12.30 | | | $ | 13.63 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)1 | | | 0.01 | | | | (0.04 | ) | | | (0.01 | ) | | | (0.12 | ) | | | (0.18 | ) |
Net realized and unrealized gain (loss) | | | (0.60 | ) | | | 0.53 | | | | 1.95 | | | | (1.42 | ) | | | (0.03 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.59 | ) | | | 0.49 | | | | 1.94 | | | | (1.54 | ) | | | (0.21 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | |
Return of capital | | | — | | | | — | | | | — | | | | — | 2 | | | — | |
Net realized gain | | | (0.88 | ) | | | (0.69 | ) | | | — | | | | (0.49 | ) | | | (1.12 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | (0.88 | ) | | | (0.69 | ) | | | — | | | | (0.49 | ) | | | (1.12 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | $ | 10.54 | | | $ | 12.01 | | | $ | 12.21 | | | $ | 10.27 | | | $ | 12.30 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return3 | | | (4.50% | ) | | | 3.85% | | | | 18.89% | | | | (12.62% | ) | | | (1.45% | ) |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | $ | 9,508 | | | $ | 12,030 | | | $ | 14,268 | | | $ | 15,136 | | | $ | 19,245 | |
Ratio of expenses to average net assets | | | 2.21% | | | | 2.23% | | | | 2.26% | | | | 2.36% | | | | 2.37% | |
Ratio of expenses to average net assets prior to fees waived | | | 2.29% | | | | 2.29% | | | | 2.46% | | | | 2.50% | | | | 2.43% | |
Ratio of net investment income (loss) to average net assets | | | 0.12% | | | | (0.35% | ) | | | (0.11% | ) | | | (1.10% | ) | | | (1.40% | ) |
Ratio of net investment income (loss) to average net assets prior to fees waived | | | 0.04% | | | | (0.41% | ) | | | (0.31% | ) | | | (1.24% | ) | | | (1.46% | ) |
Portfolio turnover | | | 32% | | | | 31% | | | | 30% | | | | 90%4 | | | | 31% | |
|
| | |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | For the year ended March 31, 2016, return of capital distribution of $1,284 for Class C calculated to a de minimis amount of $0.001 per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 4 | As a result of LSV Asset Management replacing The Delafield Group, a division of Tocqueville Asset Management L.P., and The Killen Group, Inc. as one of thesub-advisors to OptimumSmall-Mid Cap Value Fund during the Fund’s fiscal year ending March 31, 2016, the Fund’s portfolio turnover rate increased substantially during the year ended March 31, 2016. |
See accompanying notes, which are an integral part of the financial statements.
144
OptimumSmall-Mid Cap Value Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Year ended | |
| | | 3/31/19 | | | 3/31/18 | | | 3/31/17 | | | 3/31/16 | | | 3/31/15 | |
Net asset value, beginning of period | | $ | 14.45 | | | $ | 14.52 | | | $ | 12.16 | | | $ | 14.31 | | | $ | 15.53 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)1 | | | 0.16 | | | | 0.10 | | | | 0.12 | | | | (0.01 | ) | | | (0.06 | ) |
Net realized and unrealized gain (loss) | | | (0.73 | ) | | | 0.63 | | | | 2.32 | | | | (1.65 | ) | | | (0.04 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.57 | ) | | | 0.73 | | | | 2.44 | | | | (1.66 | ) | | | (0.10 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Less dividends and distributions from: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.10 | ) | | | (0.11 | ) | | | (0.08 | ) | | | — | | | | — | |
Return of capital | | | — | | | | — | | | | — | | | | — | 2 | | | — | |
Net realized gain | | | (0.88 | ) | | | (0.69 | ) | | | — | | | | (0.49 | ) | | | (1.12 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | (0.98 | ) | | | (0.80 | ) | | | (0.08 | ) | | | (0.49 | ) | | | (1.12 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of period | | $ | 12.90 | | | $ | 14.45 | | | $ | 14.52 | | | $ | 12.16 | | | $ | 14.31 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return3 | | | (3.55% | ) | | | 4.87% | | | | 20.05% | | | | (11.67% | ) | | | (0.53% | ) |
| | | | | |
Ratios and supplemental data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000 omitted) | | $ | 506,814 | | | $ | 442,808 | | | $ | 406,327 | | | $ | 441,150 | | | $ | 499,578 | |
Ratio of expenses to average net assets | | | 1.21% | | | | 1.23% | | | | 1.26% | | | | 1.36% | | | | 1.37% | |
Ratio of expenses to average net assets prior to fees waived | | | 1.29% | | | | 1.29% | | | | 1.46% | | | | 1.50% | | | | 1.43% | |
Ratio of net investment income (loss) to average net assets | | | 1.12% | | | | 0.65% | | | | 0.89% | | | | (0.10% | ) | | | (0.40% | ) |
Ratio of net investment income (loss) to average net assets prior to fees waived | | | 1.04% | | | | 0.59% | | | | 0.69% | | | | (0.24% | ) | | | (0.46% | ) |
Portfolio turnover | | | 32% | | | | 31% | | | | 30% | | | | 90% | 4 | | | 31% | |
|
| | |
| 1 | The average shares outstanding method has been applied for per share information. |
| 2 | For the year ended March 31, 2016, return of capital distribution of $31,607 for Institutional Class calculated to a de minimis amount of $0.001 per share. |
| 3 | Total return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total return during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
| 4 | As a result of LSV Asset Management replacing The Delafield Group, a division of Tocqueville Asset Management L.P., and The Killen Group, Inc. as one of thesub-advisors to OptimumSmall-Mid Cap Value Fund during the Fund’s fiscal year ending March 31, 2016, the Fund’s portfolio turnover rate increased substantially during the year ended March 31, 2016. |
See accompanying notes, which are an integral part of the financial statements.
Notes to financial statements
Optimum Fund Trust
March 31, 2019
Optimum Fund Trust (Trust) is organized as a Delaware statutory trust and offers six series: Optimum Fixed Income Fund, Optimum International Fund, Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, OptimumSmall-Mid Cap Growth Fund, and OptimumSmall-Mid Cap Value Fund, (each, a Fund, or collectively, the Funds). Each Fund is anopen-end investment company. The Funds are considered diversified under the Investment Company Act of 1940, as amended (1940 Act), and offer Class A, Class C, and Institutional Class shares. Class A shares are sold with a maximumfront-end sales charge of 4.50% for Optimum Fixed Income Fund and 5.75% for Optimum International Fund, Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, OptimumSmall-Mid Cap Growth Fund, and OptimumSmall-Mid Cap Value Fund. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) instead offront-end sales charge of 1.00%, if redeemed during the first year and 0.50% during the second year, provided that Delaware Distributors, L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class C shares are sold with a CDSC of 1.00%, which will be incurred if redeemed during the first 12 months. Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.
The investment objective of Optimum Fixed Income Fund is to seek a high level of income. The Fund may also seek growth of capital.
The investment objective of Optimum International Fund is to seek long-term growth of capital. The Fund may also seek income.
The investment objective of Optimum Large Cap Growth Fund is to seek long-term growth of capital.
The investment objective of Optimum Large Cap Value Fund is to seek long-term growth of capital. The Fund may also seek income.
The investment objective of OptimumSmall-Mid Cap Growth Fund is to seek long-term growth of capital.
The investment objective of OptimumSmall-Mid Cap Value Fund is to seek long-term growth of capital.
1. Significant Accounting Policies
Each Fund follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. The following accounting policies are in accordance with US generally accepted accounting principles (US GAAP) and are consistently followed by the Funds.
Security Valuation— Equity securities, except those traded on the Nasdaq Stock Market LLC (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange on the valuation date. Equity securities traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If, on a particular day, an equity security does not trade, the mean between the bid and ask prices will be used, which approximates fair value. Equity securities listed on a foreign exchange are normally valued at the last quoted sales price on the valuation date.Open-end investment company securities are valued at net asset value (NAV) per share, as reported by the underlying investment company. US government and agency securities are valued at the mean between the bid and ask prices, which approximates fair value. Other debt securities, credit default swap (CDS) contracts, interest rate swap contracts, CDS and interest rate swap options contracts (swaptions) are valued based upon valuations provided by an independent pricing service or broker/counterparty and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. For asset-backed securities, collateralized mortgage obligations, commercial mortgage securities, and US government agency mortgage securities, pricing vendors utilize matrix pricing which considers prepayment speed, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity, and type as well as broker/dealer-supplied prices. Swap prices are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades, and values of the underlying reference instruments. Foreign currency exchange contracts and foreign cross currency exchange contracts are valued at the mean between the bid and the ask prices, which approximates fair value. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Futures contracts and options on futures contracts are valued at the daily quoted settlement prices. Exchange-traded options are valued at the last reported sale price or, if no sales are reported, at the mean between the last reported bid and ask prices, which approximates fair value. Investments in repurchase agreements are generally valued at par, which approximates fair value, each business day. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Trust’s Board of Trustees (Board). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. Each Fund may use fair value pricing more frequently for securities traded primarily innon-US markets because, among other things,
146
most foreign markets close well before each Fund values its securities, generally as of 4:00pm Eastern time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, government actions or pronouncements, aftermarket trading, or news events may have occurred in the interim. Whenever such a significant event occurs, each Fund may value foreign securities using fair value prices based on third-party vendor modeling tools (international fair value pricing). Restricted securities are valued at fair value using methods approved by the Board.
Federal and Foreign Income Taxes— No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Funds evaluate tax positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether the tax positions are“more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the“more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management has analyzed each Fund’s tax positions taken or expected to be taken on each Fund’s federal income tax returns through the year ended March 31, 2019 and for all open tax years (years ended March 31, 2016–March 31, 2018), and has concluded that no provision for federal income tax is required in each Fund’s financial statements. In regard to foreign taxes only, each Fund has open tax years in certain foreign countries in which it invests that may date back to the inception of each Fund. If applicable, the Funds recognize interest accrued on unrecognized tax benefits in interest expense and penalties in other expenses on the “Statements of operations.” During the year ended March 31, 2019, the Funds did not incur any interest or tax penalties.
Class Accounting— Investment income, common expenses, and realized and unrealized gain (loss) on investments are allocated to the various classes of the Funds on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.
Repurchase Agreements— Each Fund may purchase certain US government securities subject to the counterparty’s agreement to repurchase them at an agreed upon date and price. The counterparty will be required on a daily basis to maintain the value of the collateral subject to the agreement at not less than the repurchase price (including accrued interest). The agreements are conditioned upon the collateral being deposited under the Federal Reserve book-entry system with each Fund’s custodian or a third-partysub-custodian. In the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings. All open repurchase agreements as of the date of this report were entered into on March 29, 2019, and matured on the next business day.
Reverse Repurchase Agreements— Optimum Fixed Income Fund may enter into reverse repurchase agreements. In a reverse repurchase agreement, the Fund sells securities to a bank or broker/dealer and agrees to repurchase the securities at an agreed upon date and price. The Fund will maintain in a segregated account, cash, cash equivalents, or US government securities in an amount sufficient to cover its obligations under reverse repurchase agreements with broker/dealers (but no collateral is required on reverse repurchase agreements with banks). The Fund will subject its investments in reverse repurchase agreements to the borrowing provisions set forth in the 1940 Act. The use of reverse repurchase agreements by the Fund creates leverage, which increases the Fund’s investment risk. If the income and gains on securities purchased with the proceeds of reverse repurchase agreements exceed the costs of the agreements, the Fund’s earnings or NAV will increase faster than otherwise would be the case; conversely, if the income and gains fail to exceed the costs, earnings or NAV would decline faster than otherwise would be the case. For the year ended March 31, 2019, the Fund had average reverse repurchase agreements of $7,966 for which it paid interest at an average rate of 2.28%. At March 31, 2019, there were no open reverse repurchase agreements in the Fund.
Short Sales— Optimum Large Cap Value Fund may make short sales in an attempt to protect against declines in an individual security or the overall market, to manage duration, or for such other purposes consistent with the Fund’s investment objective and strategies. Typically, short sales are transactions in which the Fund sells a security it does not own and, at the time a short sale is effected, the Fund incurs an obligation to replace the security borrowed at whatever its price may be at the time the Fund purchases it for delivery to the lender. The price at such time may be more or less than the price at which the security was sold by the Fund. When a short sale transaction is closed out by delivery of the security, any gain or loss on the transaction generally is taxable as short-term capital gain or loss. Until the security is replaced, the Fund is required to pay the lender amounts equal to any dividends or interest that accrue during the period of the loan. To borrow the security, the Fund also may be required to pay a premium, which would increase the cost of the security sold. The proceeds of the short sale, and potentially additional margin, will be retained by the broker from whom the security is borrowed, to the extent necessary to meet margin requirements, until the short position is closed out.
To Be Announced Trades (TBA)— Optimum Fixed Income Fund may contract to purchase or sell securities for a fixed price at a transaction date beyond the customary settlement period (examples: when issued, delayed delivery, forward commitment, or TBA transactions) consistent
Notes to financial statements
Optimum Fund Trust
1. Significant Accounting Policies (continued)
with the Fund’s ability to manage its investment portfolio and meet redemption requests. These transactions involve a commitment by the Fund to purchase or sell securities for a predetermined price or yield with payment and delivery taking place more than three days in the future, or after a period longer than the customary settlement period for that type of security. No interest will be earned by the Fund on such purchases until the securities are delivered or the transaction is completed; however, the market value may change prior to delivery. At March 31, 2019, the Fund received $6,770,000 cash collateral for TBA trades, which is included in “Cash collateral due to brokers” on the “Statements of assets and liabilities.”
Foreign Currency Transactions— Transactions denominated in foreign currencies are recorded at the prevailing exchange rates on the valuation date in accordance with the Funds’ prospectus. The value of all assets and liabilities denominated in foreign currencies is translated daily into US dollars at the exchange rate of such currencies against the US dollar. Transaction gains or losses resulting from changes in exchange rates during the reporting period or upon settlement of the foreign currency transaction are reported in operations for the current period. The Funds generally bifurcate that portion of realized gains and losses on investments in debt securities which is due to changes in foreign exchange rates from that which is due to changes in market prices of debt securities. That portion of gains (losses), which is due to changes in foreign exchange rates, is included on the “Statements of operations” under “Net realized gain (loss) on foreign currencies.” For foreign equity securities, the realized gains and losses are included on the “Statements of operations” under “Net realized and unrealized gain (loss) on investments.“ The Funds report certain foreign currency related transactions as components of realized gains (losses) for financial reporting purposes, whereas such components are treated as ordinary income (loss) for federal income tax purposes.
Use of Estimates— The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.
Other— Expenses directly attributable to a Fund are charged directly to that Fund. Other expenses common to various funds within the Trust are generally allocated among such funds on the basis of average net assets. Management fees and certain other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Dividend income is recorded on theex-dividend date and interest income is recorded on the accrual basis. Discounts and premiums on debt securities are accreted or amortized to interest income, respectively, over the lives of the respective securities using the effective interest method. Realized gains (losses) on paydowns of asset- and mortgage-backed securities are classified as interest income. Distributions received from investments in real estate investment trusts (REITs) are recorded as dividend income on theex-dividend date, subject to reclassification upon notice of the character of such distributions by the issuer. Distributions received from investments in master limited partnerships are recorded as return of capital on investments on theex-dividend date. Foreign dividends are also recorded on theex-dividend date or as soon after theex-dividend date that the Funds are aware of such dividends, net of all tax withholdings, a portion of which may be reclaimable. Withholding taxes and reclaims on foreign dividends and interest have been recorded in accordance with the Funds’ understanding of the applicable country’s tax rules and rates. Each Fund may pay foreign capital gains taxes on certain foreign securities held, which are reported as components of realized losses for financial reporting purposes, whereas such components are treated as ordinary loss for federal income tax purposes. Each Fund declares and pays distributions from net investment income and net realized gain on investments, if any, at least annually. The Funds may distribute more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on theex-dividend date.
Each Fund receives earnings credits from its custodian when positive cash balances are maintained, which may be used to offset custody fees. The expenses paid under this arrangement are included on the “Statements of operations” under “Custodian fees” with the corresponding expenses offset included under “Less expenses paid indirectly.” For the year ended March 31, 2019, each Fund earned the following amounts under this arrangement:
| | | | | | | | | | |
| Optimum | | Optimum | | Optimum | | Optimum | | Optimum | | Optimum |
| Fixed Income | | International | | Large Cap | | Large Cap | | Small-Mid Cap | | Small-Mid Cap |
| Fund | | Fund | | Growth Fund | | Value Fund | | Growth Fund | | Value Fund |
| $93,384 | | $776 | | $1,538 | | $5,250 | | $1,558 | | $1,127 |
148
Each Fund receives earnings credits from its transfer agent when positive cash balances are maintained, which may be used to offset transfer agent fees. If the amount earned is greater than $1, the expenses paid under this arrangement are included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses” with the corresponding expenses offset included under “Less expenses paid indirectly.” For the year ended March 31, 2019, each Fund earned the following amounts under this arrangement:
| | | | | | | | | | |
| Optimum | | Optimum | | Optimum | | Optimum | | Optimum | | Optimum |
| Fixed Income | | International | | Large Cap | | Large Cap | | Small-Mid Cap | | Small-Mid Cap |
| Fund | | Fund | | Growth Fund | | Value Fund | | Growth Fund | | Value Fund |
| $880 | | $817 | | $952 | | $942 | | $927 | | $932 |
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates
Delaware Management Company (DMC), a series of Macquarie Investment Management Business Trust, furnishes investment management services to each Fund and has full discretion and responsibility, subject to the overall supervision of the Board, to select and contract with one or more investmentsub-advisors to manage the investment operations and composition of each Fund, and to render investment advice for each Fund, including the purchase, retention, and dispositions of investments, securities, and cash contained in each Fund. The investment management agreement obligates DMC to implement decisions with respect to the allocation or reallocation of each Fund’s assets among one or more current or additionalsub-advisors, and to monitor thesub-advisors’ compliance with the relevant Fund’s investment objective, policies and restrictions. DMC pays thesub-advisors out of its fees, which are calculated daily and paid monthly.
In accordance with the terms of its respective investment management agreement, DMC is entitled to receive an annual fee equal to the following percentage rates of the average daily net assets of each Fund, which is calculated daily and paid monthly:
| | |
| Optimum Fixed Income Fund | | 0.6000% of net assets up to $500 million |
| | 0.5500% of net assets from $500 million to $1 billion |
| | 0.5000% of net assets from $1 billion to $1.5 billion |
| | 0.4500% of net assets from $1.5 billion to $2 billion |
| | 0.4250% of net assets from $2 billion to $2.5 billion |
| | 0.4000% of net assets from $2.5 billion to $5 billion |
| | 0.3750% of net assets over $5 billion |
| |
| Optimum International Fund | | 0.7500% of net assets up to $500 million |
| | 0.7150% of net assets from $500 million to $1 billion |
| | 0.7000% of net assets from $1 billion to $1.5 billion |
| | 0.6750% of net assets from $1.5 billion to $2 billion |
| | 0.6500% of net assets from $2 billion to $2.5 billion |
| | 0.6000% of net assets over $2.5 billion |
| |
| Optimum Large Cap Growth Fund | | 0.7500% of net assets up to $500 million |
| | 0.7000% of net assets from $500 million to $1 billion |
| | 0.6500% of net assets from $1 billion to $1.5 billion |
| | 0.6250% of net assets from $1.5 billion to $2 billion |
| | 0.6000% of net assets from $2 billion to $2.5 billion |
| | 0.5750% of net assets from $2.5 billion to $5 billion |
| | 0.5500% of net assets over $5 billion |
| |
| Optimum Large Cap Value Fund | | 0.7000% of net assets up to $500 million |
| | 0.6500% of net assets from $500 million to $1 billion |
| | 0.6000% of net assets from $1 billion to $1.5 billion |
| | 0.5750% of net assets from $1.5 billion to $2 billion |
| | 0.5500% of net assets from $2 billion to $2.5 billion |
| | 0.5250% of net assets from 2.5 billion to $5 billion |
| | 0.5000% of net assets over $5 billion |
Notes to financial statements
Optimum Fund Trust
2. Investment Management, Administration Agreements,
and Other Transactions with Affiliates (continued)
| | |
| Optimum Small-Mid Cap Growth Fund | | 1.1000% of net assets up to $250 million |
| | 1.0000% of net assets from $250 million to $500 million |
| | 0.9000% of net assets from $500 million to $750 million |
| | 0.8000% of net assets from $750 million to $1 billion |
| | 0.7500% of net assets from $1 billion to $1.5 billion |
| | 0.7000% of net assets over $1.5 billion |
| |
| OptimumSmall-Mid Cap Value Fund | | 1.0000% of net assets up to $250 million |
| | 0.9000% of net assets from $250 million to $500 million |
| | 0.8000% of net assets from $500 million to $750 million |
| | 0.7500% of net assets from $750 million to $1 billion |
| | 0.7000% of net assets from $1 billion to $1.5 billion |
| | 0.6500% of net assets over $1.5 billion |
DMC has entered intosub-advisory agreements for the Trust as follows: Optimum Fixed Income Fund – Pacific Investment Management Company, LLC (PIMCO); Optimum International Fund – Acadian Asset Management LLC (Acadian), and EARNEST Partners, LLC (EARNEST); Optimum Large Cap Growth Fund – T. Rowe Price Associates, Inc. (T. Rowe Price) and ClearBridge Investments LLC (ClearBridge); Optimum Large Cap Value Fund – Massachusetts Financial Services Company (MFS) and Rothschild Asset Management Inc. (Rothschild); OptimumSmall-Mid Cap Growth Fund – Columbus Circle Investors (CCI) and Peregrine Capital Management LLC (Peregrine); OptimumSmall-Mid Cap Value Fund – LSV Asset Management (LSV) and Westwood Management Corp. (Westwood).
For the year ended March 31, 2019, DMC paid the followingsub-advisory fees:
| | | | | | | | | | |
Optimum
Fixed Income
Fund | | Optimum
International
Fund | | Optimum
Large Cap
Growth Fund | | Optimum
Large Cap
Value Fund | | Optimum
Small-Mid Cap
Growth Fund | | Optimum
Small-Mid Cap
Value Fund |
| $2,665,256 | | $2,330,570 | | $5,685,564 | | $4,564,564 | | $2,517,164 | | $2,594,911 |
DMC has contractually agreed to waive all or a portion, if any, of its management fee and/or pay/reimburse each Fund to the extent necessary to ensure that total annual operating expenses (excluding any distribution and service(12b-1) fees, acquired fund fees and expenses, taxes, interest, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) do not exceed the following percentages of each Fund’s average daily net assets. For purposes of these waivers and reimbursements, nonroutine expenses may also include such additional costs and expenses as may be agreed upon from time to time by the Board and DMC. These expense waivers and reimbursements apply only to expenses paid directly by each Fund and may only be terminated by agreement of DMC and each Fund. These waivers and reimbursements are accrued daily and received monthly.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Optimum | | | Optimum | | | Optimum | | | Optimum | | | Optimum | | | Optimum | |
| | | Fixed Income | | | International | | | Large Cap | | | Large Cap | | | Small-Mid Cap | | | Small-Mid Cap | |
| | | Fund | | | Fund | | | Growth Fund | | | Value Fund | | | Growth Fund | | | Value Fund | |
Operating expense limitation as a percentage of average daily net assets (per annum) for the period | | | | | | | | | | | | | | | | | | | | | | | | |
July 27, 2018 – | | | | | | | | | | | | | | | | | | | | | | | | |
July 29, 2019 | | | 0.85% | | | | 1.12% | | | | 1.02% | | | | 0.97% | | | | 1.29% | | | | 1.21% | |
Operating expense limitation as a percentage of average daily net assets (per annum) for the period | | | | | | | | | | | | | | | | | | | | | | | | |
July 29, 2017 – | | | | | | | | | | | | | | | | | | | | | | | | |
July 26, 2018 | | | 0.86% | | | | 1.13% | | | | 1.02% | | | | 0.98% | | | | 1.29% | | | | 1.22% | |
150
Delaware Investments Fund Services Company (DIFSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to the Trust. These services include overseeing the Funds’ pricing process, the calculation and payment of Fund expenses, and financial reporting in shareholder reports, registration statements and other regulatory filings. DIFSC also manages the process for the payment of dividends and distribution and dissemination of Funds’ NAV and performance data. For these services the Funds pay DIFSC an asset-based fee, plus certainout-of-pocket expenses and transactional charges. DIFSC’s fees are calculated daily and paid monthly based on the aggregate daily net assets of the Trust at the following annual rates: 0.0075% of the first $3.5 billion; 0.0070% of the next $2 billion; 0.0060% of the next $2 billion; and 0.0050% of aggregate average daily net assets in excess of $7.5 billion. The fees payable to DIFSC under the service agreement described above are allocated among all funds in the Trust on a relative NAV basis. These amounts are included on the “Statements of operations” under “Accounting fees.” For the year ended March 31, 2019, each Fund was charged for these services as follows:
| | | | | | | | | | |
Optimum Fixed Income Fund | | Optimum
International
Fund | | Optimum
Large Cap
Growth Fund | | Optimum
Large Cap
Value Fund | | Optimum
Small-Mid Cap
Growth Fund | | Optimum
Small-Mid Cap
Value Fund |
| | | | | |
$152,032 | | $43,378 | | $116,715 | | $105,703 | | $38,784 | | $37,595 |
DIFSC provides the Trust with administrative services including: preparation, filing and maintaining governing documents; preparation of materials and reports for the Board; and preparation and filing of registration statements and other regulatory filings. For these administrative services, the Trust pays DIFSC the following fee as a percentage of the Trust’s average daily net assets (plusout-of-pocket expenses): 0.0525% of assets up to $7.5 billion; 0.0475% of assets from $7.5 billion to $10 billion; 0.0425% of assets from $10 billion to $12 billion; 0.0375% of assets from $12 billion to $14 billion and 0.0325% of assets over $14 billion.
DIFSC is also the shareholder servicing, dividend disbursing, and transfer agent for each Fund. For these services, the Trust pays DIFSC a fee at an annual rate of 0.18% of the Trust’s total average daily net assets, subject to a minimum fee of $2,000 per class per fund each month, plusout-of-pocket expenses. The fee is calculated daily and paid monthly. Pursuant to asub-transfer agency agreement between DIFSC and BNY Mellon Investment Servicing (US) Inc. (BNYMIS), BNYMIS provides certainsub-transfer agency services to the Funds.Sub-transfer agency fees are paid by the Funds and are also included on the “Statements of operations” under “Dividend disbursing and transfer agent fees and expenses.”
DDLP, an affiliate of DMC, serves as the national distributor of each Fund’s shares pursuant to a Distribution Agreement. Pursuant to the Distribution Agreement and Rule12b-1 plan, each Fund pays DDLP an annual12b-1 fee of 0.25% of the average daily net assets of the Class A shares and 1.00% of the average daily net assets of the Class C shares. The fees are calculated daily and paid monthly. Institutional Class shares do not pay12b-1 fees.
For the year ended March 31, 2019, DDLP earned commissions on sales of Class A shares for each Fund as follows:
| | | | | | | | | | |
Optimum Fixed Income Fund | | Optimum
International
Fund | | Optimum
Large Cap
Growth Fund | | Optimum
Large Cap
Value Fund | | Optimum
Small-Mid Cap
Growth Fund | | Optimum
Small-Mid Cap
Value Fund |
| | | | | |
$23,674 | | $515 | | $1,310 | | $1,741 | | $210 | | $242 |
For the year ended March 31, 2019, DDLP received gross CDSC commissions on redemptions of each Fund’s Class C shares, and these commissions were entirely used to offset upfront commissions previously paid by DDLP to broker/dealers on sales of those shares. The amounts received were as follows:
| | | | | | | | | | |
Optimum Fixed Income Fund | | Optimum
International
Fund | | Optimum
Large Cap
Growth Fund | | Optimum
Large Cap
Value Fund | | Optimum
Small-Mid Cap
Growth Fund | | Optimum
Small-Mid Cap
Value Fund |
| | | | | |
$3,594 | | $646 | | $1,488 | | $2,062 | | $220 | | $224 |
DMC, DIFSC and DDLP are indirect, wholly owned subsidiaries of Macquarie Management Holdings, Inc. Certain officers of DMC, DIFSC and DDLP are officers and/or Trustees of the Trust. These officers and Trustees are paid no compensation by the Funds.
Notes to financial statements
Optimum Fund Trust
2. Investment Management, Administration Agreements, and Other Transactions with Affiliates (continued)
Cross trades for the year ended March 31, 2019, were executed by the Funds pursuant to procedures adopted by the Board designed to ensure compliance with Rule17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds of investment companies, or between a fund of an investment company and another entity, that are or could be considered affiliates by virtue of having a common investment advisor (or affiliated investment advisors), common directors/trustees and/or common officers. At its regularly scheduled meetings, the Board reviews such transactions for compliance with the procedures adopted by the Board. Optimum Fixed Income Fund, Optimum International Fund, Optimum Large Cap Value Fund, and Optimum Small Cap Value Fund did not engage in Rule17a-7 securities purchases and/or securities sales for the year ended March 31, 2019. Pursuant to these procedures, for the year ended March 31, 2019, the following Funds engaged in Rule17a-7 securities purchases and sales, which resulted in net realized losses as follows:
| | | | | | | | | | | | |
| | | Optimum
Large Cap
Growth Fund | | | Optimum
Small-Mid Cap
Growth Fund | | | Optimum
Small-Mid Cap
Value Fund | |
| | | |
Purchases | | | $ 176,883 | | | | $2,062,152 | | | | $ 268,080 | |
Sales | | | 1,140,934 | | | | 1,202,748 | | | | 970,162 | |
Net realized gain (loss) | | | 322,069 | | | | 165,828 | | | | 85,115 | |
3. Investments
For the year ended March 31, 2019, each Fund made purchases and sales of investments securities other than short-term investments as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Optimum
Fixed Income
Fund | | | Optimum
International
Fund | | | Optimum
Large Cap
Growth Fund | | | Optimum
Large Cap
Value Fund | | | Optimum
Small-Mid Cap
Growth Fund | | | Optimum
Small-Mid Cap
Value Fund | |
Purchases other than US government securities | | $ | 911,875,896 | | | $ | 369,574,560 | | | $ | 421,598,828 | | | $ | 381,632,330 | | | | $417,892,528 | | | | $249,816,664 | |
Purchases of US government securities | | | 10,202,786,966 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Sales other than US government securities | | | 852,812,098 | | | | 429,112,429 | | | | 718,548,334 | | | | 335,432,044 | | | | 472,339,036 | | | | 158,884,857 | |
Sales of US government securities | | | 9,900,754,350 | | | | — | | | | — | | | | — | | | | — | | | | — | |
152
The tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be final tax cost basis adjustments, but approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. At March 31, 2019, the cost and unrealized appreciation (depreciation) of investments and derivatives for federal income tax purpose for each Fund were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Optimum
Fixed Income
Fund | | | Optimum
International
Fund | | | Optimum
Large Cap
Growth Fund | | | Optimum
Large Cap
Value Fund | | | Optimum
Small-Mid Cap
Growth Fund | | | Optimum
Small-Mid Cap
Value Fund | |
Cost of investments and derivatives | | $ | 2,815,171,951 | | | $ | 519,691,650 | | | $ | 1,270,569,050 | | | $ | 1,292,596,937 | | | $ | 425,760,400 | | | $ | 503,741,762 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Aggregate unrealized appreciation of investments and derivatives | | $ | 43,181,087 | | | $ | 83,643,314 | | | $ | 452,451,665 | | | $ | 312,618,231 | | | $ | 118,004,743 | | | $ | 60,187,309 | |
Aggregate unrealized depreciation of investments and derivatives | | | (33,706,672 | ) | | | (45,461,852 | ) | | | (44,237,759 | ) | | | (42,178,445 | ) | | | (23,983,554 | ) | | | (42,679,540 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized appreciation (depreciation) of investments and derivatives | | $ | 9,474,415 | | | $ | 38,181,462 | | | $ | 408,213,906 | | | $ | 270,439,786 | | | $ | 94,021,189 | | | $ | 17,507,769 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
US GAAP defines fair value as the price that each Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized below.
| | | | |
| Level 1 | | – | | Inputs are quoted prices in active markets for identical investments. (Examples: equity securities,open-end investment companies, futures contracts, exchange-traded options contracts) |
| | |
| Level 2 | | – | | Other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities) |
| | |
| Level 3 | | – | | Significant unobservable inputs, including each Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities, fair valued securities) |
Level 3 investments are valued using significant unobservable inputs. Each Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.
Notes to financial statements
Optimum Fund Trust
3. Investments (continued)
The following tables summarize the valuation of each Fund’s investments by fair value hierarchy levels as of March 31, 2019:
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Optimum Fixed Income Fund | | | | | | |
| | | | | | | |
| | | Level 1 | | | | | Level 2 | | | | | Level 3 | | | | | Total | |
Securities | | | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | |
Agency, Asset- & Mortgage-Backed Securities1 | | $ | — | | | | | $ | 865,260,082 | | | | | $ | 2,027,400 | | | | | $ | 867,287,482 | |
Corporate Debt | | | — | | | | | | 909,022,965 | | | | | | — | | | | | | 909,022,965 | |
Foreign Debt | | | — | | | | | | 108,937,090 | | | | | | — | | | | | | 108,937,090 | |
Municipal Bonds | | | — | | | | | | 16,204,683 | | | | | | — | | | | | | 16,204,683 | |
Loan Agreements1 | | | — | | | | | | 91,494,710 | | | | | | 3,106,157 | | | | | | 94,600,867 | |
Common Stock | | | — | | | | | | — | | | | | | — | | | | | | — | |
Convertible Preferred Stock1 | | | 4,964,595 | | | | | | 1,791,559 | | | | | | — | | | | | | 6,756,154 | |
Preferred Stock | | | — | | | | | | 2,203,536 | | | | | | — | | | | | | 2,203,536 | |
US Treasury Obligations | | | — | | | | | | 622,541,987 | | | | | | — | | | | | | 622,541,987 | |
Short-Term Investments1 | | | 50,488,500 | | | | | | 143,860,174 | | | | | | — | | | | | | 194,348,674 | |
Options Purchased | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
Total Value of Securities Before Options Written | | $ | 55,453,095 | | | | | $ | 2,761,316,786 | | | | | $ | 5,133,557 | | | | | $ | 2,821,903,438 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Options Written | | $ | — | | | | | $ | (124 | ) | | | | $ | — | | | | | $ | (124 | ) |
| | | | | | | |
Derivatives2 | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | $ | — | | | | | $ | 1,747,022 | | | | | $ | — | | | | | $ | 1,747,022 | |
Futures Contracts | | | 7,127,425 | | | | | | — | | | | | | — | | | | | | 7,127,425 | |
Swap Contracts | | | — | | | | | | 4,503,945 | | | | | | — | | | | | | 4,503,945 | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | | — | | | | | | (509,861 | ) | | | | | — | | | | | | (509,861 | ) |
Futures Contracts | | | (2,675,470 | ) | | | | | — | | | | | | — | | | | | | (2,675,470 | ) |
Swap Contracts | | | — | | | | | | (6,415,731 | ) | | | | | — | | | | | | (6,415,731 | ) |
1Security type is valued across multiple levels. Level 1 investments represent exchange-traded investments, Level 2 investments represent investments with observable inputs or matrix-priced investments, and Level 3 investments represent investments without observable inputs. The amounts attributed to Level 1 investments, Level 2 investments, and Level 3 investments represent the following percentages of the total market value of these security types:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Level 1 | | | | | | Level 2 | | | | | | Level 3 | | | | | | Total | |
| | | | | | | |
Agency, Asset & Mortgage-Backed Securities | | | — | | | | | | | | 99.77% | | | | | | | | 0.23% | | | | | | | | 100.00 | % |
Loan Agreements | | | — | | | | | | | | 96.72% | | | | | | | | 3.28% | | | | | | | | 100.00 | % |
Convertible Preferred Stock | | | 73.48 | % | | | | | | | 26.52% | | | | | | | | — | | | | | | | | 100.00 | % |
Short-Term Investments | | | 25.98 | % | | | | | | | 74.02% | | | | | | | | — | | | | | | | | 100.00 | % |
2Foreign currency exchange contracts, futures contracts, and swap contracts are valued at the unrealized appreciation (depreciation) on the instrument at the year end.
154
| | | | | | | | | | | | | | | | |
| | | | | | Optimum International Fund | | | | |
| | | | |
| Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| | | | |
Assets: | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | |
Australia | | $ | 2,905,929 | | | $ | 18,152,457 | | | $ | — | | | $ | 21,058,386 | |
Austria | | | — | | | | 10,544,125 | | | | — | | | | 10,544,125 | |
Brazil | | | 18,098,062 | | | | — | | | | — | | | | 18,098,062 | |
Cambodia | | | — | | | | 378,125 | | | | — | | | | 378,125 | |
Canada | | | 41,238,802 | | | | — | | | | — | | | | 41,238,802 | |
Chile | | | 6,031,271 | | | | — | | | | — | | | | 6,031,271 | |
China/Hong Kong | | | 2,946,309 | | | | 56,933,722 | | | | — | | | | 59,880,031 | |
Colombia | | | 4,626,769 | | | | — | | | | — | | | | 4,626,769 | |
Czech Republic | | | — | | | | 2,015,912 | | | | — | | | | 2,015,912 | |
Denmark | | | — | | | | 6,584,936 | | | | — | | | | 6,584,936 | |
Finland | | | — | | | | 2,930,897 | | | | — | | | | 2,930,897 | |
France | | | — | | | | 26,347,717 | | | | — | | | | 26,347,717 | |
Germany | | | 1,653,226 | | | | 20,297,628 | | | | — | | | | 21,950,854 | |
Greece | | | 91,163 | | | | — | | | | — | | | | 91,163 | |
Hungary | | | — | | | | 1,742,728 | | | | — | | | | 1,742,728 | |
India | | | 9,966,994 | | | | 4,997,747 | | | | — | | | | 14,964,741 | |
Indonesia | | | — | | | | 2,707,591 | | | | — | | | | 2,707,591 | |
Israel | | | 8,076,957 | | | | 13,449,359 | | | | — | | | | 21,526,316 | |
Italy | | | 327,133 | | | | 6,855,548 | | | | — | | | | 7,182,681 | |
Japan | | | — | | | | 57,832,684 | | | | — | | | | 57,832,684 | |
Malaysia | | | — | | | | 481,779 | | | | — | | | | 481,779 | |
Mexico | | | 7,184,694 | | | | — | | | | — | | | | 7,184,694 | |
Netherlands | | | — | | | | 26,564,248 | | | | — | | | | 26,564,248 | |
New Zealand | | | — | | | | 279,533 | | | | — | | | | 279,533 | |
Norway | | | 4,634,374 | | | | 8,624,036 | | | | — | | | | 13,258,410 | |
Poland | | | — | | | | 924,469 | | | | — | | | | 924,469 | |
Portugal | | | — | | | | 54,398 | | | | — | | | | 54,398 | |
Republic of Korea | | | 2,752,013 | | | | 17,031,298 | | | | — | | | | 19,783,311 | |
Russia | | | 32,910 | | | | 319,573 | | | | — | | | | 352,483 | |
Singapore | | | — | | | | 7,400,485 | | | | — | | | | 7,400,485 | |
South Africa | | | 605,842 | | | | 1,985,545 | | | | — | | | | 2,591,387 | |
Spain | | | 4,741,215 | | | | 8,993,423 | | | | — | | | | 13,734,638 | |
Sweden | | | 930,126 | | | | 1,996,703 | | | | — | | | | 2,926,829 | |
Switzerland | | | 9,495,206 | | | | 13,622,333 | | | | — | | | | 23,117,539 | |
Taiwan | | | 24,934 | | | | 14,859,259 | | | | — | | | | 14,884,193 | |
Thailand | | | 889,000 | | | | 9,216,188 | | | | — | | | | 10,105,188 | |
Turkey | | | — | | | | 3,122,221 | | | | — | | | | 3,122,221 | |
United Kingdom | | | 6,721,264 | | | | 29,459,730 | | | | — | | | | 36,180,994 | |
United States | | | 31,190,322 | | | | 1,802,778 | | | | 444,408 | | | | 33,437,508 | |
Preferred Stock | | | 1,906,315 | | | | — | | | | — | | | | 1,906,315 | |
Short-Term Investments | | | 3,630,135 | | | | — | | | | — | | | | 3,630,135 | |
Securities Lending Collateral | | | — | | | | 8,258,807 | | | | — | | | | 8,258,807 | |
| | | | | | | | | | | | | | | | |
Total Value of Securities | | $ | 170,700,965 | | | $ | 386,767,982 | | | $ | 444,408 | | | $ | 557,913,355 | |
| | | | | | | | | | | | | | | | |
Derivatives1 | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | $ | — | | | $ | 922 | | | $ | — | | | $ | 922 | |
Liabilities: | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | | — | | | | (41,165 | ) | | | — | | | | (41,165 | ) |
1Foreign Currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument at the year end.
Notes to financial statements
Optimum Fund Trust
3. Investments (continued)
| | | | | | | | | | | | | | | | | | | | |
| | | | | Optimum Large Cap Growth Fund | | |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
Securities | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | | | | | |
Communication Services | | | $ | 238,290,285 | | | | $ | 18,896,386 | | | | $ | — | | | | $ | 257,186,671 | |
Consumer Discretionary | | | | 287,899,393 | | | | | — | | | | | — | | | | | 287,899,393 | |
Consumer Staples | | | | 57,862,988 | | | | | — | | | | | — | | | | | 57,862,988 | |
Energy | | | | 14,077,140 | | | | | — | | | | | — | | | | | 14,077,140 | |
Financials | | | | 76,917,919 | | | | | — | | | | | 45,195 | | | | | 76,963,114 | |
Healthcare | | | | 231,732,185 | | | | | — | | | | | — | | | | | 231,732,185 | |
Industrials | | | | 148,785,521 | | | | | — | | | | | — | | | | | 148,785,521 | |
Information Technology | | | | 488,516,269 | | | | | — | | | | | — | | | | | 488,516,269 | |
Materials | | | | 32,662,867 | | | | | — | | | | | — | | | | | 32,662,867 | |
Real Estate | | | | 18,567,577 | | | | | — | | | | | — | | | | | 18,567,577 | |
Utilities | | | | 13,387,315 | | | | | — | | | | | — | | | | | 13,387,315 | |
Convertible Preferred Stock | | | | — | | | | | — | | | | | 9,580,983 | | | | | 9,580,983 | |
Short-Term Investments | | | | 41,560,933 | | | | | — | | | | | — | | | | | 41,560,933 | |
| | | | | | | | | | | | | | | | | | | | |
Total Value of Securities | | | $ | 1,650,260,392 | | | | $ | 18,896,386 | | | | $ | 9,626,178 | | | | $ | 1,678,782,956 | |
| | | | | | | | | | | | | | | | | | | | |
| | | |
| | | | | Optimum Large Cap Value Fund | | |
| | | | |
| | | Level 1 | | Level 2 | | Total | | |
Securities | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | | | | | |
Communication Services | | | $ | 115,780,995 | | | | $ | — | | | | $ | 115,780,995 | | | | | | |
Consumer Discretionary | | | | 33,769,415 | | | | | — | | | | | 33,769,415 | | | | | | |
Consumer Staples | | | | 85,231,177 | | | | | 30,803,498 | | | | | 116,034,675 | | | | | | |
Energy | | | | 111,805,459 | | | | | — | | | | | 111,805,459 | | | | | | |
Financials | | | | 381,623,161 | | | | | — | | | | | 381,623,161 | | | | | | |
Healthcare | | | | 249,358,701 | | | | | 5,433,039 | | | | | 254,791,740 | | | | | | |
Industrials | | | | 215,968,231 | | | | | — | | | | | 215,968,231 | | | | | | |
Information Technology | | | | 152,760,886 | | | | | — | | | | | 152,760,886 | | | | | | |
Materials | | | | 40,137,464 | | | | | — | | | | | 40,137,464 | | | | | | |
Real Estate | | | | 42,404,223 | | | | | — | | | | | 42,404,223 | | | | | | |
Utilities | | | | 75,019,136 | | | | | — | | | | | 75,019,136 | | | | | | |
Short-Term Investments | | | | 23,356,030 | | | | | — | | | | | 23,356,030 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total Value of Securities | | | $ | 1,527,214,878 | | | | $ | 36,236,537 | | | | $ | 1,563,451,415 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
Security Sold Short | | | $ | (414,692 | ) | | | $ | — | | | | $ | (414,692 | ) | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | |
| | | | | Optimum Small-Mid Cap Growth Fund | | |
| | | | |
| | | Level 1 | | Level 3 | | Total | | |
Securities | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | |
Common Stock | | | $ | 501,725,890 | | | | | $ — | | | | | $501,725,890 | | | | | | |
Convertible Preferred Stock1 | | | | 1,476,973 | | | | | 1,209,536 | | | | | 2,686,509 | | | | | | |
Short-Term Investments | | | | 15,369,190 | | | | | — | | | | | 15,369,190 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total Value of Securities | | | $ | 518,572,053 | | | | | $1,209,536 | | | | | $519,781,589 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
1Security type is valued across multiple levels. Level 1 investments represent exchange-traded investments and Level 3 investments represent investments without observable inputs. The amounts attributed to Level 1 investments and Level 3 investments represent the following percentages of the total market value of this security type:
| | | | | | | | | | | | | | | | | | | | |
| | | Level 1 | | Level 3 | | Total | | |
Convertible Preferred Stock | | | | 54.98 | % | | | | 45.02 | % | | 100.00% | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | Optimum Small-Mid Cap Value Fund | | |
| | | | | | | | | | | | | | | | | | | | |
Securities | | | | | | | | | Level 1 | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | $ | 510,264,466 | | | | | | | | | | | |
Short-Term Investments | | | | | | | | | 10,985,065 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total Value of Securities | | | | | | | | $ | 521,249,531 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Securities valued at zero on the “Schedules of investments” are considered to be Level 3 investments in these tables.
As a result of utilizing international fair value pricing at March 31, 2019, a portion of Optimum International Fund’s common stock investments were categorized as Level 2.
During the year ended March 31, 2019, there were no transfers between Level 1 investments, Level 2 investments, or Level 3 investments that had a significant impact to the Funds. This does not include transfers between Level 1 investments and Level 2 investments due to the Funds utilizing international fair value pricing during the year. In accordance with the fair valuation procedures described in Note 1, international fair value pricing of securities in each Fund occurs when market volatility exceeds an established rolling threshold. If the threshold is exceeded on a given date, then prices of international securities (those that traded on exchanges that close at a different time than the time that the Funds’ NAV is determined) are established using a separate pricing feed from a third party vendor designed to establish a price for each such security as of the time that the Funds’ NAV is determined. Further, international fair value pricing uses other observable market-based inputs in place of the closing exchange price due to the events occurring after the close of the exchange or market on which the investment is principally traded, causing a change in classification between levels. Each Fund’s policy is to recognize transfers between levels based on fair value at the beginning of the reporting period.
A reconciliation of Level 3 investments is presented when each Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to each Fund’s net assets. Management has determined not to provide additional disclosure on Level 3 inputs since the Level 3 investments were not considered significant to each Fund’s net assets at the end of the year. There were no Level 3 investments during the year ended March 31, 2019 for Optimum Large Cap Value Fund and OptimumSmall-Mid Cap Value Fund.
Notes to financial statements
Optimum Fund Trust
4. Dividend and Distribution Information
Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Additionally, distributions from net gains on foreign currency transactions and net short-term gains on sales of investment securities are treated as ordinary income for federal income tax purposes. The tax character of dividends and distributions paid during the years ended March 31, 2019 and 2018 were as follows:
Year ended March 31, 2019
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Optimum
Fixed Income
Fund | | Optimum
International
Fund | | Optimum
Large Cap
Growth Fund | | Optimum
Large Cap
Value Fund | | Optimum
Small-Mid Cap
Growth Fund | | Optimum
Small-Mid Cap
Value Fund |
Ordinary income | | | $ | 53,756,210 | | | | $ | 11,516,874 | | | | $ | 14,693,064 | | | | $ | 22,094,176 | | | | $ | 9,660,035 | | | | $ | 5,391,640 | |
Long-term capital gains | | | | — | | | | | 29,894,421 | | | | | 178,069,913 | | | | | 40,503,856 | | | | | 80,048,529 | | | | | 30,875,465 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | $ | 53,756,210 | | | | $ | 41,411,295 | | | | $ | 192,762,977 | | | | $ | 62,598,032 | | | | $ | 89,708,564 | | | | $ | 36,267,105 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
Year ended March 31, 2018 | | | | | | |
| | | Optimum
Fixed Income
Fund | | Optimum
International
Fund | | Optimum
Large Cap
Growth Fund | | Optimum
Large Cap
Value Fund | | Optimum
Small-Mid Cap
Growth Fund | | Optimum
Small-Mid Cap
Value Fund |
Ordinary income | | | $ | 47,132,743 | | | | $ | 6,176,988 | | | | $ | 33,279,056 | | | | $ | 16,652,898 | | | | $ | — | | | | $ | 3,056,675 | |
Long-term capital gains | | | | — | | | | | 6,783,636 | | | | | 232,627,130 | | | | | 63,216,601 | | | | | 20,484,133 | | | | | 20,363,748 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | $ | 47,132,743 | | | | $ | 12,960,624 | | | | $ | 265,906,186 | | | | $ | 79,869,499 | | | | $ | 20,484,133 | | | | $ | 23,420,423 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
5. Components of Net Assets on a Tax Basis | | | | | | | | | | | | | | | | | | | | | |
As of March 31, 2019, the components of net assets on a tax basis were as follows:
| | | | | | | | | | | | | | |
| | | | | Optimum
Fixed Income
Fund | | | Optimum
International
Fund | | | Optimum
Large Cap
Growth Fund | |
Shares of beneficial interest | | | | $ | 2,373,496,570 | | | | $511,156,124 | | | | $1,253,653,531 | |
Undistributed ordinary income | | | | | 15,711,682 | | | | 3,177,737 | | | | 1,269,941 | |
Undistributed long-term capital gains | | | | | — | | | | 1,447,268 | | | | 13,029,475 | |
Capital loss carryforwards | | | | | (28,892,499 | ) | | | — | | | | — | |
Troubled debt litigation* | | | | | (970,052 | ) | | | — | | | | — | |
Unrealized appreciation of investments, foreign currencies, and derivatives | | | | | 9,474,415 | | | | 38,181,462 | | | | 408,213,906 | |
| | | | | | | | | | | | | | |
Net assets | | | | $ | 2,368,820,116 | | | | $553,962,591 | | | | $1,676,166,853 | |
| | | | | | | | | | | | | | |
| | | | |
| | | | | Optimum
Large Cap
Value Fund | | | Optimum
Small-Mid Cap
Growth Fund | | | Optimum
Small-Mid Cap
Value Fund | |
Share of beneficial interest | | | | $ | 1,289,752,688 | | | | $406,469,630 | | | | $490,909,719 | |
Undistributed ordinary income | | | | | 5,367,822 | | | | — | | | | 1,568,753 | |
Undistributed long-term capital gains | | | | | 2,319,857 | | | | 22,801,295 | | | | 9,601,453 | |
Qualified late year loss deferral | | | | | — | | | | (10,517,632 | ) | | | — | |
Unrealized appreciation of investments and foreign currencies | | | | | 270,439,786 | | | | 94,021,189 | | | | 17,507,769 | |
| | | | | | | | | | | | | | |
Net assets | | | | $ | 1,567,880,153 | | | | $512,774,482 | | | | $519,587,694 | |
| | | | | | | | | | | | | | |
*See Note 12.
The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales, tax deferral of losses on straddles,mark-to-market of foreign currency exchange contracts,mark-to-market of futures contracts, tax recognition of
158
unrealized gain on passive foreign investment companies, tax treatment of swap contracts, contingent payment debt instruments, amortization of premium on convertible securities, trust preferred securities, troubled debt, partnership interest and deemed dividend income.
Qualified late year ordinary and capital losses (including currency and specified gain/loss items) represent losses realized from Jan. 1, 2019 through March 31, 2019 and Nov. 1, 2018 through March 31, 2019, respectively, that, in accordance with federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.
For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of net operating losses, redesignation of dividends and distributions, gain (loss) on foreign currency transactions, tax treatment of partnerships, amortization of premium on convertible securities, treasury inflation protected securities, swap contracts, foreign capital gain tax, deemed dividend income, contingent payment on debt instruments, sale of passive foreign investment companies, and paydown gains (losses) of asset- and mortgage-backed securities. Results of operations and net assets were not affected by these reclassifications. For the year ended March 31, 2019, the Funds recorded the following reclassifications:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Optimum
Fixed Income
Fund | | Optimum
International
Fund | | Optimum
Large Cap
Growth Fund | | Optimum
Large Cap
Value Fund | | Optimum
Small-Mid Cap
Growth Fund | | Optimum
Small-Mid Cap
Value Fund |
Distributable earnings | | | | $— | | | | | $— | | | | | $(10,828) | | | | | $— | | | | | $— | | | | | $— | |
Paid-in capital | | | | — | | | | | — | | | | | 10,828 | | | | | — | | | | | — | | | | | — | |
For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. At March 31, 2019, Optimum Fixed Income Fund utilized $5,524,034 of capital loss carryforwards.
At March 31, 2019, there were no capital loss carryforwards for Optimum International Fund, Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, OptimumSmall-Mid Cap Growth Fund, and OptimumSmall-Mid Cap Value Fund. Capital loss carryforwards available to offset future realized capital gains for Optimum Fixed Income Fund at March 31, 2019 were as follows:
| | | | | | |
| | | Loss Carryforward Character |
| | | Short-term | | Long-term | | Total |
Optimum Fixed Income Fund | | $3,814,689 | | $25,077,810 | | $28,892,499 |
Notes to financial statements
Optimum Fund Trust
6. Capital Shares
Transactions in capital shares were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Optimum | | | Optimum | | | Optimum | |
| | | Fixed Income | | | International | | | Large Cap | |
| | | Fund | | | Fund | | | Growth Fund | |
| | | |
| | | Year ended | | | Year ended | | | Year ended | |
| | | 3/31/19 | | | 3/31/18 | | | 3/31/19 | | | 3/31/18 | | | 3/31/19 | | | 3/31/18 | |
Shares sold: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 188,268 | | | | 282,639 | | | | 25,079 | | | | 32,258 | | | | 38,939 | | | | 72,689 | |
Class C | | | 630,924 | | | | 617,287 | | | | 55,253 | | | | 59,224 | | | | 68,870 | | | | 115,858 | |
Institutional Class | | | 69,792,050 | | | | 43,178,438 | | | | 7,608,435 | | | | 8,390,457 | | | | 13,680,802 | | | | 13,467,891 | |
Shares issued upon reinvestment of dividends and distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 61,708 | | | | 73,931 | | | | 46,090 | | | | 11,816 | | | | 242,655 | | | | 327,335 | |
Class C | | | 131,714 | | | | 174,638 | | | | 129,826 | | | | 26,637 | | | | 984,572 | | | | 1,374,702 | |
Institutional Class | | | 5,726,909 | | | | 4,744,885 | | | | 3,309,858 | | | | 873,668 | | | | 10,611,468 | | | | 13,415,414 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 76,531,573 | | | | 49,071,818 | | | | 11,174,541 | | | | 9,394,060 | | | | 25,627,306 | | | | 28,773,889 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (660,778 | ) | | | (734,034 | ) | | | (96,717 | ) | | | (147,929 | ) | | | (381,417 | ) | | | (440,681 | ) |
Class C | | | (2,264,676 | ) | | | (2,744,699 | ) | | | (406,128 | ) | | | (557,855 | ) | | | (1,664,422 | ) | | | (1,905,871 | ) |
Institutional Class | | | (38,873,248 | ) | | | (30,237,929 | ) | | | (12,886,082 | ) | | | (8,424,316 | ) | | | (25,281,543 | ) | | | (15,378,250 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | (41,798,702 | ) | | | (33,716,662 | ) | | | (13,388,927 | ) | | | (9,130,100 | ) | | | (27,327,382 | ) | | | (17,724,802 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 34,732,871 | | | | 15,355,156 | | | | (2,214,386 | ) | | | 263,960 | | | | (1,700,076 | ) | | | 11,049,087 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
| | | Optimum | | | Optimum | | | Optimum | |
| | | Large Cap | | | Small-Mid Cap | | | Small-Mid Cap | |
| | | Value Fund | | | Growth Fund | | | Value Fund | |
| | | |
| | | Year ended | | | Year ended | | | Year ended | |
| | | 3/31/19 | | | 3/31/18 | | | 3/31/19 | | | 3/31/18 | | | 3/31/19 | | | 3/31/18 | |
Shares sold: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 48,020 | | | | 84,253 | | | | 10,569 | | | | 19,248 | | | | 9,354 | | | | 16,085 | |
Class C | | | 99,438 | | | | 133,200 | | | | 17,897 | | | | 28,529 | | | | 18,484 | | | | 29,509 | |
Institutional Class | | | 16,680,986 | | | | 15,925,346 | | | | 5,140,284 | | | | 5,180,608 | | | | 11,721,860 | | | | 5,713,301 | |
Shares issued upon reinvestment of dividends and distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 62,073 | | | | 91,386 | | | | 75,976 | | | | 16,151 | | | | 21,042 | | | | 15,411 | |
Class C | | | 146,453 | | | | 261,551 | | | | 305,320 | | | | 66,430 | | | | 75,223 | | | | 57,132 | |
Institutional Class | | | 3,968,965 | | | | 4,536,599 | | | | 6,429,203 | | | | 1,240,971 | | | | 2,886,088 | | | | 1,524,163 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 21,005,935 | | | | 21,032,335 | | | | 11,979,249 | | | | 6,551,937 | | | | 14,732,051 | | | | 7,355,601 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (274,476 | ) | | | (374,848 | ) | | | (79,117 | ) | | | (84,133 | ) | | | (43,747 | ) | | | (60,100 | ) |
Class C | | | (1,073,369 | ) | | | (1,393,295 | ) | | | (284,506 | ) | | | (337,176 | ) | | | (193,155 | ) | | | (253,384 | ) |
Institutional Class | | | (13,848,116 | ) | | | (13,097,979 | ) | | | (7,663,370 | ) | | | (6,285,264 | ) | | | (5,969,407 | ) | | | (4,580,915 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | (15,195,961 | ) | | | (14,866,122 | ) | | | (8,026,993 | ) | | | (6,706,573 | ) | | | (6,206,309 | ) | | | (4,894,399 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 5,809,974 | | | | 6,166,213 | | | | 3,952,256 | | | | (154,636 | ) | | | 8,525,742 | | | | 2,461,202 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
160
Certain shareholders may exchange shares of one class for shares of another class in the same Fund. These exchange transactions are included as subscriptions and redemptions in the tables above and on the previous page and the ”Statements of changes in net assets.“ For the years ended March 31, 2019 and 2018 each Fund had the following exchange transactions.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Year ended | | | | | | |
| | | | | | | 3/31/19 | | | | | | |
| | | Exchange Redemptions | | Exchange Subscriptions | | | | |
| | | Class A
Shares | | Class C
Shares | | Institutional Class
Shares | | Class A
Shares | | | Institutional Class
Shares | | | Value | |
Optimum Fixed Income Fund | | | 17,544 | | | | 717 | | | | 6,129 | | | | 6,130 | | | | 18,239 | | | $ | 225,363 | |
Optimum International Fund | | | 3,044 | | | | 1,339 | | | | 4,807 | | | | 5,856 | | | | 3,307 | | | | 124,940 | |
Optimum Large Cap Growth Fund | | | 12,356 | | | | 3,979 | | | | 10,350 | | | | 11,112 | | | | 14,625 | | | | 486,113 | |
Optimum Large Cap Value Fund | | | 10,550 | | | | 3,831 | | | | 9,927 | | | | 9,965 | | | | 14,271 | | | | 395,302 | |
OptimumSmall-Mid Cap Growth Fund | | | 1,640 | | | | 888 | | | | 2,596 | | | | 3,146 | | | | 1,901 | | | | 86,651 | |
OptimumSmall-Mid Cap Value Fund | | | 1,203 | | | | 60 | | | | 2,649 | | | | 2,807 | | | | 1,185 | | | | 54,733 | |
| | | | | | |
| | | | | | | Year ended | | | | | | | | | |
| | | | | | | 3/31/18 | | | | | | | | | |
| | | | |
| | | Exchange
Redemptions
Class A Shares | | Exchange
Subscriptions
Institutional Class Shares | | Value | | | | |
Optimum Fixed Income Fund | | | 12,118 | | | | 12,116 | | | | $115,129 | | | | | |
Optimum International Fund | | | 2,210 | | | | 2,193 | | | | 29,216 | | | | | |
Optimum Large Cap Growth Fund | | | 6,256 | | | | 5,915 | | | | 111,692 | | | | | |
Optimum Large Cap Value Fund | | | 6,186 | | | | 6,170 | | | | 96,292 | | | | | |
OptimumSmall-Mid Cap Growth Fund | | | 1,258 | | | | 1,179 | | | | 17,354 | | | | | |
OptimumSmall-Mid Cap Value Fund | | | 845 | | | | 800 | | | | 11,661 | | | | | |
7. Derivatives
US GAAP requires disclosures that enable investors to understand: (1) how and why an entity uses derivatives; (2) how they are accounted for; and (3) how they affect an entity’s results of operations and financial position.
Foreign Currency Exchange Contracts— Each Fund may enter into foreign currency exchange contracts and foreign cross currency exchange contracts as a way of managing foreign exchange rate risk. Each Fund may enter into these contracts to fix the US dollar value of a security that it has agreed to buy or sell for the period between the date the trade was entered into and the date the security is delivered and paid for. Each Fund may also enter into these contracts to hedge the US dollar value of securities it already owns that are denominated in foreign currencies. In addition, each Fund may enter into these contracts to facilitate or expedite the settlement of portfolio transactions. The change in value is recorded as an unrealized gain or loss. When the contract is closed, a realized gain or loss is recorded equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
The use of foreign currency exchange contracts and foreign cross currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities, but does establish a rate of exchange that can be achieved in the future. Although foreign currency exchange contracts and foreign cross currency exchange contracts limit the risk of loss due to an unfavorable change in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency change favorably. In addition, each Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts. Each Fund’s maximum risk of loss from counterparty credit risk is the value of its currency exchanged with the counterparty. The risk is generally mitigated by having a netting arrangement between the Funds and the counterparty and by the posting of collateral by the counterparty to the Funds to cover the Funds’ exposure to the counterparty. During the year ended March 31, 2019, OptimumSmall-Mid Cap Growth Fund and OptimumSmall-Mid Cap Value Fund did not use foreign currency exchange contracts.
During the year ended March 31, 2019, Optimum Fixed Income Fund used foreign currency exchange contracts to hedge the US dollar value of securities it already owns that are denominated in foreign currencies.
Notes to financial statements
Optimum Fund Trust
7. Derivatives (continued)
During the year ended March 31, 2019, Optimum International Fund, Optimum Large Cap Growth Fund, and Optimum Large Cap Value Fund each used foreign currency exchange contracts to facilitate or expedite the settlement of portfolio transactions. Optimum International Fund also used foreign currency exchange contracts to fix the US dollar value of a security between trade date and settlement date.
Futures Contracts— A futures contract is an agreement in which the writer (or seller) of the contract agrees to deliver to the buyer an amount of cash or securities equal to a specific dollar amount times the difference between the value of a specific security or index at the close of the last trading day of the contract and the price at which the agreement is made. Optimum Fixed Income Fund may use futures in the normal course of pursuing its investment objective. Optimum Fixed Income Fund may invest in futures contracts to hedge its existing portfolio securities against fluctuations in value caused by changes in interest rates or market conditions. Upon entering into a futures contract, the Fund deposits cash or pledges US government securities to a broker, equal to the minimum “initial margin” requirements of the exchange on which the contract is traded. Subsequent payments are received from the broker or paid to the broker each day, based on the daily fluctuation in the market value of the contract. These receipts or payments are known as “variation margin” and are recorded daily by the Fund as unrealized gains or losses until the contracts are closed. When the contracts are closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts include potential imperfect correlation between the futures contracts and the underlying securities and the possibility of an illiquid secondary market for these instruments. When investing in futures, there is reduced counterparty credit risk to the Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. The Fund posted securities collateral valued at $5,211,332 and $13,000 cash collateral as margin for open futures contracts. Securities collateral are presented on the ”Schedules of investments“.
During the year ended March 31, 2019, Optimum Fixed Income Fund used futures contracts to hedge the Fund’s existing portfolio securities against fluctuations in value caused by changes in interest rates or market conditions and to facilitate investments in portfolio securities.
Options Contracts—Optimum Fixed Income Fund may enter into options contracts in the normal course of pursuing its investment objective. The Fund may buy or write options contracts for any number of reasons, including without limitation: to manage the Fund’s exposure to changes in securities prices caused by interest rates or market conditions and foreign currencies; as an efficient means of adjusting the Fund’s overall exposure to certain markets; to protect the value of portfolio securities; and as a cash management tool. The Fund may buy or write call or put options on securities, futures, swaps, swaptions, financial indices, and foreign currencies. When the Fund buys an option, a premium is paid and an asset is recorded and adjusted on a daily basis to reflect the current market value of the option purchased. When the Fund writes an option, a premium is received and a liability is recorded and adjusted on a daily basis to reflect the current market value of the option written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Fund has a realized gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option. When writing options, the Fund is subject to minimal counterparty risk because the counterparty is only obligated to pay premiums and does not bear the market risk of an unfavorable market change.
During the year ended March 31, 2019, Optimum Fixed Income Fund used options contracts to manage the Fund’s exposure to changes in securities prices caused by interest rates or market conditions, to adjust the Fund’s overall exposure to certain markets, and to receive premiums for writing options.
Swap Contracts—Optimum Fixed Income Fund may enter into currency swap contracts, index swap contracts, inflation swaps, interest rate swap contracts, and CDS contracts in the normal course of pursuing its investment objective. The Fund may invest in interest rate swaps to manage the Fund’s sensitivity to interest rates or to hedge against changes in interest rates. The Fund may use currency swaps to protect against currency fluctuations. The Fund may use inflation swaps to hedge the inflation risk in nominal bonds, thereby creating synthetic inflation-indexed bonds. The Fund may enter into CDS contracts in order to hedge against a credit event, to enhance total return or to gain exposure to certain securities or markets. The Fund will not be permitted to enter into any swap transactions unless, at the time of entering into such transactions, the unsecured long-term debt of the actual counterparty, combined with any credit enhancements, is rated at leastBBB- by Standard & Poor’s Financial Services LLC (S&P) or Baa3 by Moody’s Investors Service, Inc. (Moody’s) or is determined to be of equivalent credit quality by DMC.
162
Interest Rate Swaps.An interest rate swap contract is an exchange of interest rates between counterparties. In one instance, an interest rate swap involves payments received by Optimum Fixed Income Fund from another party based on a variable or floating interest rate, in return for making payments based on a fixed interest rate. An interest rate swap can also work in reverse with the Fund receiving payments based on a fixed interest rate and making payments based on a variable or floating interest rate. Interest rate swaps may be used to adjust the Fund’s sensitivity to interest rates or to hedge against changes in interest rates. Periodic payments on such contracts are accrued daily and recorded as unrealized appreciation (depreciation) on swap contracts. Upon periodic payment (receipt) or termination of the contract, such amounts are recorded as realized gains or losses on swap contracts. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparty over the interest rate swap contract’s remaining life, to the extent that the amount is positive. This risk is mitigated by (1) for bilateral swap contracts, having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty and (2) for cleared swaps, trading these instruments through a central counterparty.
During the year ended March 31, 2019, Optimum Fixed Income Fund used interest rate swap contracts to manage the Fund’s sensitivity to interest rates or to hedge against changes in interest rates.
Credit Default Swaps.A CDS contract is a risk-transfer instrument through which one party (purchaser of protection) transfers to another party (seller of protection) the financial risk of a credit event (as defined in the CDS agreement), as it relates to a particular reference security or basket of securities (such as an index). In exchange for the protection offered by the seller of protection, the purchaser of protection agrees to pay the seller of protection a periodic amount at a stated rate that is applied to the notional amount of the CDS contract. In addition, an upfront payment may be made or received by the Fund in connection with an unwinding or assignment of a CDS contract. Upon the occurrence of a credit event, the seller of protection would pay the par (or other agreed-upon) value of the reference security (or basket of securities) to the counterparty. Credit events generally include, among others, bankruptcy, failure to pay, and obligation default.
During the year ended March 31, 2019, Optimum Fixed Income Fund entered into CDS contracts as a purchaser and seller of protection, as a hedge against credit events. Periodic payments (receipts) on such contracts are accrued daily and recorded as unrealized losses (gains) on swap contracts. Upon payment (receipt), such amounts are recorded as realized losses (gains) on swap contracts. Upfront payments made or received in connection with CDS contracts are amortized over the expected life of the CDS contracts as unrealized losses (gains) on swap contracts. The change in value of CDS contracts is recorded daily as unrealized appreciation or depreciation. A realized gain or loss is recorded upon a credit event (as defined in the CDS agreement) or the maturity or termination of the agreement. Initial margin and variation margin are posted to central counterparties for centrally cleared CDS basket trades, as determined by the applicable central counterparty.
As disclosed in the footnotes to the “Schedules of investments,” at March 31, 2019, the notional value of the protection sold was EUR800,000 and USD32,855,000, which reflects the maximum potential amount Optimum Fixed Income Fund would have been required to make as a seller of credit protection if a credit event had occurred. In addition to serving as the source of the current value of the securities, the quoted market prices and resulting market values for credit default swap agreements on securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative if the swap agreement has been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the reference entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. At March 31, 2019, there were no recourse provisions with third parties to recover any amounts paid under the credit derivative agreement (including any purchased credit protection) nor was any collateral held by the Fund and other third parties which the Fund can obtain in the occurrence of a credit event. At March 31, 2019, net unrealized appreciation of the protection sold was $1,125,561.
CDS contracts may involve greater risks than if Optimum Fixed Income Fund had invested in the reference obligation directly. CDS contracts are subject to general market risk, liquidity risk, counterparty risk, and credit risk. The Fund’s maximum risk of loss from counterparty credit risk, either as the seller of protection or the buyer of protection, is the fair value of the contract. This risk is mitigated by (1) for bilateral swap contracts, having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty, and (2) for cleared swaps, trading these instruments through a central counterparty.
During the year ended March 31, 2019, Optimum Fixed Income Fund used CDS contracts to hedge against credit events, and to gain exposure to certain securities or markets.
Swaps Generally.For centrally cleared swaps, payments are received from the broker or paid to the broker each day, based on the daily fluctuation in the market value of the contract. These receipts or payments are known as “variation margin” and are recorded by
Notes to financial statements
Optimum Fund Trust
7. Derivatives (continued)
Optimum Fixed Income Fund as unrealized gains or losses until the contracts are closed. When the contracts are closed, Optimum Fixed Income Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The value of open swaps may differ from that which would be realized in the event Optimum Fixed Income Fund terminated its position in the contract on a given day. Risks of entering into these contracts include the potential inability of the counterparty to meet the terms of the contracts. This type of risk is generally limited to the amount of favorable movement in the value of the underlying security, instrument or basket of instruments, if any, at the day of default. Risks also arise from potential losses from adverse market movements and such losses could exceed the unrealized amounts shown on the “Schedules of investments.”
At March 31, 2019, for bilateral derivative contracts, Optimum Fixed Income Fund posted $740,000 in cash collateral for certain open derivatives, and $1,337,327 cash collateral for certain centrally cleared derivatives, which is included in “Cash collateral due from brokers” on the “Statements of assets and liabilities.” The Fund also posted $4,599,310 in securities collateral comprised of US treasury obligations for certain open centrally cleared derivative contracts and $122,274 in securities collateral comprised of US treasury obligations for bilateral derivative contracts. At March 31, 2019, for bilateral derivative contracts, the Fund received $1,370,000 in cash collateral, which is included in “Cash collateral due to brokers” on the “Statements of assets and liabilities.” Cash collateral is included on the “Statements of assets and liabilities” and securities collateral is presented on the “Schedules of investments.”
Fair values of derivative instruments for Optimum Fixed Income Fund as of March 31, 2019 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Asset Derivatives
Fair Value |
| Statements of Assets and Liabilities Location | | Currency
Contracts | | Interest rate
Contracts | | Credit
Contracts | | Total |
| Unrealized appreciation of foreign currency exchange contracts | | | | | $ 1,747,048 | | | | | $ — | | | | | $ — | | | | | $ 1,747,048 | |
| Variation margin due from broker on futures contracts* | | | | | 190,492 | | | | | 6,936,933 | | | | | — | | | | | 7,127,425 | |
| Variation margin due from brokers on centrally cleared credit default swap contracts** | | | | | — | | | | | — | | | | | 5,004 | | | | | 5,004 | |
| Variation margin due from brokers on centrally cleared interest rate swap contracts** | | | | | — | | | | | 3,308,355 | | | | | — | | | | | 3,308,355 | |
| Unrealized appreciation of credit default swap contracts | | | | | — | | | | | — | | | | | 1,195,590 | | | | | 1,195,590 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | $ 1,937,540 | | | | | $10,245,288 | | | | | $1,200,594 | | | | | $13,383,422 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | |
| Liability Derivatives
Fair Value |
|
Statements of Assets and Liabilities
Location | | Currency
Contracts | | Interest
Contracts | | Credit
Contracts | | Total | | |
| Unrealized depreciation of foreign currency exchange contracts | | | $ | (509,861 | ) | | | $ | — | | | | $ | — | | | | $ | (509,861 | ) | | | | | |
| Variation margin due from broker on futures contracts* | | | | (1,013,873 | ) | | | | (1,661,597 | ) | | | | — | | | | | (2,675,470 | ) | | | | | |
| Options written, at value | | | | — | | | | | — | | | | | (124 | ) | | | | (124 | ) | | | | | |
| Variation margin due to brokers on centrally cleared credit default swap contracts** | | | | — | | | | | — | | | | | (16,441 | ) | | | | (16,441 | ) | | | | | |
| Variation margin due to brokers on centrally cleared interest rate swap contracts** | | | | — | | | | | (6,329,261 | ) | | | | — | | | | | (6,329,261 | ) | | | | | |
| Unrealized depreciation of credit default swap contracts | | | | — | | | | | — | | | | | (86,470 | ) | | | | (86,470 | ) | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | $ | (1,523,734 | ) | | | | $(7,990,858 | ) | | | | $(103,035) | | | | | $(9,617,627 | ) | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
*Includes cumulative appreciation (depreciation) of futures contracts from the date the contracts were opened through March 31, 2019. Only current day variation margin is reported on Optimum Fixed Income Fund’s “Statements of assets and liabilities.”
**Includes cumulative appreciation (depreciation) of centrally cleared swap contracts from the date the contracts were opened through March 31, 2019. Only current day variation margin is reported on Optimum Fixed Income Fund’s “Statements of assets and liabilities.”
164
The effect of derivative instruments on Optimum Fixed Income Fund’s “Statements of operations” for the year ended March 31, 2019 was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net Realized Gain (Loss) on: |
| | | Foreign
Currency
Exchange
Contracts | | Futures
Contracts | | Options
Purchased | | Options
Written | | Swap
Contracts | | Total |
Currency contracts | | | $ | 9,003,085 | | | | | $ 6,856,526 | | | | | $ — | | | | | $ 4,708 | | | | | $ — | | | | | $15,864,319 | |
Equity contracts | | | | — | | | | | (1,027,491 | ) | | | | (43,992 | ) | | | | — | | | | | — | | | | | (1,071,483 | ) |
Interest rate contracts | | | | — | | | | | 11,946,698 | | | | | (1,084,568 | ) | | | | 1,269,294 | | | | | (1,034,815 | ) | | | | 11,096,609 | |
Credit contracts | | | | — | | | | | — | | | | | — | | | | | 45,319 | | | | | (28,743 | ) | | | | 16,576 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | $ | 9,003,085 | | | | | $17,775,733 | | | | | $(1,128,560 | ) | | | | $1,319,321 | | | | | $(1,063,558 | ) | | | | $25,906,021 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | | Net Change in Unrealized Appreciation (Depreciation) of: | |
| | | Foreign
Currency
Exchange
Contracts | | Futures
Contracts | | Options
Purchased | | Options
Written | | Swap
Contracts | | Total |
Currency contracts | | | $ | 1,176,117 | | | | | $ 209,541 | | | | | $ — | | | | | $ (1,268) | | | | | $ — | | | | | $ 1,384,390 | |
Equity contracts | | | | — | | | | | (144,115 | ) | | | | — | | | | | — | | | | | — | | | | | (144,115 | ) |
Interest rate contracts | | | | — | | | | | (4,467,242 | ) | | | | 824,117 | | | | | (776,885 | ) | | | | (6,902,811 | ) | | | | (11,322,821 | ) |
Credit contracts | | | | — | | | | | — | | | | | — | | | | | 5,746 | | | | | (382,580 | ) | | | | (376,834 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | $ | 1,176,117 | | | | | $(4,401,816) | | | | | $824,117 | | | | | $(772,407 | ) | | | | $(7,285,391 | ) | | | | $(10,459,380 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
During the year ended March 31, 2019, Optimum International Fund, Optimum Large Cap Growth Fund, and Optimum Large Cap Value Fund experienced net realized and unrealized gains or losses attributable to foreign currency holdings, which are disclosed on the “Statements of assets and liabilities” and/or “Statements of operations.”
Derivatives Generally.The tables below summarize the average balance of derivative holdings by the Funds during the year ended March 31, 2019:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Long Derivative Volume | | | | | | | | | |
| | | Optimum
Fixed Income
Fund | | | Optimum
International
Fund | | | Optimum
Large Cap
Growth Fund | | | Optimum
Large Cap
Value Fund | |
Foreign currency exchange contracts
(average cost) | | USD | | | 40,967,301 | | | | USD | | | | 1,076,438 | | | | USD | | | | 52,701 | | | | USD | | | | 10,434 | |
Futures contracts
(average notional value) | | | | | 775,415,210 | | | | | | | | — | | | | | | | | — | | | | | | | | — | |
Options contracts
(average notional value) | | | | | 110,189 | | | | | | | | — | | | | | | | | — | | | | | | | | — | |
CDS contracts
(average notional value)* | | EUR | | | 204,722 | | | | | | | | — | | | | | | | | — | | | | | | | | — | |
| | USD | | | 12,351,012 | | | | | | | | — | | | | | | | | — | | | | | | | | — | |
Interest rate swap contracts
(average notional value)** | | MXN | | | 4,498,413 | | | | | | | | — | | | | | | | | — | | | | | | | | — | |
| | USD | | | 135,044,841 | | | | | | | | — | | | | | | | | — | | | | | | | | — | |
Notes to financial statements
Optimum Fund Trust
7. Derivatives (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Short Derivative Volume | | | | | | | |
| | | Optimum
Fixed Income
Fund | | | Optimum
International
Fund | | | Optimum
Large Cap
Growth Fund | | | Optimum
Large Cap
Value Fund | |
Foreign currency exchange contracts (average cost) | | USD | | | 181,068,701 | | | | USD | | | | 1,239,269 | | | | USD | | | | 12,090 | | | | USD | | | | 3,589 | |
Futures contracts
(average notional value) | | | | | 603,792,693 | | | | | | | | — | | | | | | | | — | | | | | | | | — | |
Options contracts
(average notional value) | | | | | 119,807 | | | | | | | | — | | | | | | | | — | | | | | | | | — | |
CDS contracts
(average notional value)* | | EUR | | | 796,825 | | | | | | | | — | | | | | | | | — | | | | | | | | — | |
| | USD | | | 33,716,469 | | | | | | | | — | | | | | | | | — | | | | | | | | — | |
Interest rate swap contracts
(average notional value)** | | GBP | | | 28,072,619 | | | | | | | | — | | | | | | | | — | | | | | | | | — | |
| | JPY | | | 5,254,722,222 | | | | | | | | — | | | | | | | | — | | | | | | | | — | |
| | USD | | | 278,971,448 | | | | | | | | — | | | | | | | | — | | | | | | | | — | |
*Long represents buying protection and short represents selling protection.
**Long represents receiving fixed interest payments and short represents paying fixed interest payments.
8. Offsetting
Each Fund entered into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or a similar agreement with certain of its derivative contract counterparties in order to better define its contractual rights and to secure rights that will help each Fund mitigate its counterparty risk. An ISDA Master Agreement is a bilateral agreement between each Fund and a counterparty that governs certainover-the-counter (OTC) derivatives and foreign exchange contracts and typically contains, among other things, collateral posting items and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, each Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default(close-out), including the bankruptcy or insolvency of the counterparty. However, bankruptcy, or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.
For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements on the “Statements of assets and liabilities.”
166
At March 31, 2019, the Funds had the following assets and liabilities subject to offsetting provisions:
Offsetting of Financial Assets and Liabilities and Derivative Assets and Liabilities
| | | | | | | | | | | | | | | |
| | | Optimum Fixed Income Fund | | |
| | | |
| | | Gross Value of | | Gross Value of | | |
Counterparty | | Derivative Asset | | Derivative Liability | | Net Position |
Bank of America Merrill Lynch | | | $ | 165,028 | | | | $ | (111,285 | ) | | | $ | 53,743 | |
BNP Paribas | | | | 1,017,059 | | | | | (136,253 | ) | | | | 880,806 | |
Citigroup Global Markets | | | | 244,746 | | | | | (159,856 | ) | | | | 84,890 | |
Deutsche Bank | | | | 1,033,371 | | | | | — | | | | | 1,033,371 | |
Goldman Sachs | | | | 98,654 | | | | | — | | | | | 98,654 | |
Hong Kong Shanghai Bank | | | | 1,274 | | | | | (19,474 | ) | | | | (18,200 | ) |
JPMorgan Chase Bank | | | | 376,005 | | | | | (68,442 | ) | | | | 307,563 | |
Morgan Stanley Capital | | | | 8,085 | | | | | (70,029 | ) | | | | (61,944 | ) |
The Bank of New York Mellon | | | | — | | | | | (19 | ) | | | | (19 | ) |
Toronto Dominion Bank | | | | — | | | | | (14,532 | ) | | | | (14,532 | ) |
| | | | | | | | | | | | | | | |
Total | | | $ | 2,944,222 | | | | $ | (579,890 | ) | | | $ | 2,364,332 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Counterparty | | Net Position | | Fair Value of
Non-Cash
Collateral Received | | Cash Collateral
Received(a) | | Fair Value of
Non-Cash
Collateral Pledged | | Cash Collateral
Pledged | | Net Exposure(b) |
Bank of America Merrill Lynch | | | $ | 53,743 | | | | $ | — | | | | $ | (53,743 | ) | | | $ | — | | | | $ | — | | | | $ | — | |
BNP Paribas | | | | 880,806 | | | | | — | | | | | (720,000 | ) | | | | — | | | | | — | | | | | 160,806 | |
Citigroup Global Markets | | | | 84,890 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 84,890 | |
Deutsche Bank | | | | 1,033,371 | | | | | — | | | | | (190,000 | ) | | | | — | | | | | — | | | | | 843,371 | |
Goldman Sachs | | | | 98,654 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 98,654 | |
Hong Kong Shanghai Bank | | | | (18,200 | ) | | | | — | | | | | — | | | | | — | | | | | — | | | | | (18,200 | ) |
JPMorgan Chase Bank | | | | 307,563 | | | | | — | | | | | (307,563 | ) | | | | — | | | | | — | | | | | — | |
Morgan Stanley Capital | | | | (61,944 | ) | | | | — | | | | | — | | | | | — | | | | | 61,944 | | | | | — | |
The Bank of New York Mellon | | | | (19 | ) | | | | — | | | | | — | | | | | — | | | | | — | | | | | (19 | ) |
Toronto Dominion Bank | | | | (14,532 | ) | | | | — | | | | | — | | | | | — | | | | | 14,532 | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | $ | 2,364,332 | | | | | $— | | | | $ | (1,271,306 | ) | | | | $— | | | | $ | 76,476 | | | | $ | 1,169,502 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes to financial statements
Optimum Fund Trust
8. Offsetting (continued)
| | | | | | | | | | | | | | | |
| | | Optimum International Fund | | |
| | | Gross Value of | | Gross Value of | | |
Counterparty | | Derivative Asset | | Derivative Liability | | Net Position |
Bank of New York Mellon | | | $ | — | | | | $ | (3,609 | ) | | | $ | (3,609 | ) |
Brown Brothers Harriman | | | | 922 | | | | | (37,556 | ) | | | | (36,634 | ) |
| | | | | | | | | | | | | | | |
Total | | | $ | 922 | | | | $ | (41,165 | ) | | | $ | (40,243 | ) |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Counterparty | | Net Position | | Fair Value of
Non-Cash
Collateral Received | | Cash Collateral
Received(a) | | Fair Value of
Non-Cash
Collateral Pledged | | Cash Collateral
Pledged | | Net Exposure(b) |
Bank of New
York Mellon | | | $ | (3,609 | ) | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | (3,609 | ) |
Brown Brothers
Harriman | | | | (36,634 | ) | | | | — | | | | | — | | | | | — | | | | | — | | | | | (36,634 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | $ | (40,243 | ) | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | (40,243 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Master Repurchase Agreements
Repurchase agreements are entered into by each Fund under master repurchase agreements (each, an MRA). The MRA permits each Fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables with collateral held by and/or posted to the counterparty. As a result, one single net payment is created. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Based on the terms of the MRA, each Fund receives securities as collateral with a market value in excess of the repurchase price at maturity. Upon a bankruptcy or insolvency of the MRA counterparty, each Fund would recognize a liability with respect to such excess collateral. The liability reflects each Fund’s obligation under bankruptcy law to return the excess to the counterparty. As of March 31, 2019, the following table is a summary of each Fund’s repurchase agreements by counterparty which are subject to offset under an MRA:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Optimum Fixed Income Fund | | |
| | | | | |
Counterparty | | Repurchase
Agreements | | Fair Value of
Non-Cash
Collateral
Received(a) | | Cash
Collateral
Received | | Net Collateral
Received | | Net
Exposure(b) |
| | | | | |
Barclays | | | $ | 32,200,000 | | | | $ | (32,200,000 | ) | | | $ | — | | | | $ | (32,200,000 | ) | | | $ | — | |
JPMorgan Chase Bank | | | | 85,200,000 | | | | | (85,200,000 | ) | | | | — | | | | | (85,200,000 | ) | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | $ | 117,400,000 | | | | $ | (117,400,000 | ) | | | $ | — | | | | $ | (117,400,000 | ) | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Master Securities Forward Transaction Agreements
Master Securities Forward Transaction Agreements (MFA) govern certain forward settling transactions, such as TBA securities, delayed-delivery or sale-buyback transactions by and between the Fund and select counterparties. The MFA maintain provisions for, among other things, transaction initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. As of March 31, 2019, the following table is a summary of the Fund’s TBA securities by counterparty which are subject to offsetting under MFA:
| | | | | | | | | | | | | | | | | | | | |
| | | Optimum Fixed Income Fund |
Counterparty | | TBA
at Value | | Cash
Collateral
Received | | Cash
Collateral
Pledged | | Net
Exposure(b) |
| | | | |
Morgan Stanley & Co. LLC | | | $ | 333,455,930 | | | | $ | (6,770,000 | ) | | | $ | — | | | | $ | 326,685,930 | |
168
Securities Lending
Securities lending transactions are entered into by Optimum International Fund under master securities lending agreements (each, an MSLA) which provide the right, in the event of default (including bankruptcy or insolvency), for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell orre-pledge the loaned securities, and the Fund can reinvest cash collateral, or, upon an event of default, resell, orre-pledge the collateral (See also Note 9).
As of March 31, 2019, the following table is a summary of Optimum International Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Securities Loaned
at Value | | Cash Collateral
Received(a) | | Fair value of
Non-Cash Collateral
Received | | Net Exposure(b) |
| | | | |
The Bank of New York Mellon | | | $ | 9,242,284 | | | | $ | (8,017,475 | ) | | | $ | (1,224,809 | ) | | | $ | — | |
(a)The value of the related collateral exceeded the value of the derivatives, repurchase agreements and securities lending transactions as of March 31, 2019.
(b)Net exposure represents the receivable (payable) that would be due from (to) the counterparty in the event of default.
9. Securities Lending
Each Fund may lend its securities pursuant to a security lending agreement (Lending Agreement) with The Bank of New York Mellon (BNY Mellon). At the time a security is loaned, the borrower must post collateral equal to the required percentage of the market value of the loaned security, including any accrued interest. The required percentage is: (1) 102% with respect to US securities and foreign securities that are denominated and payable in US dollars; and (2) 105% with respect to foreign securities. With respect to each loan, if on any business day the aggregate market value of securities collateral plus cash collateral held is less than the aggregate market value of the securities which are the subject of such loan, the borrower will be notified to provide additional collateral by the end of the following business day, which, together with the collateral already held, will be not less than the applicable initial collateral requirements for such security loan. If the aggregate market value of securities collateral and cash collateral held with respect to a security loan exceeds the applicable initial collateral requirement, upon the request of the borrower, BNY Mellon must return enough collateral to the borrower by the end of the following business day to reduce the value of the remaining collateral to the applicable initial collateral requirement for such security loan. As a result of the foregoing, the value of the collateral held with respect to a loaned security on any particular day, may be more or less than the value of the security on loan. The collateral percentage with respect to the market value of the loaned security is determined by the security lending agent.
Cash collateral received by each fund of the Trust is generally invested in a series of individual separate accounts, each corresponding to a fund. The investment guidelines permit each separate account to hold certain securities that would be considered eligible securities for a money market fund. Cash collateral received is generally invested in government securities; certain obligations issued by government sponsored enterprises; repurchase agreements collateralized by US Treasury securities; obligations issued by the central government of any Organization for Economic Cooperation and Development (OECD) country or its agencies, instrumentalities, or establishments; obligations of supranational organizations; commercial paper, notes, bonds, and other debt obligations; certificates of deposit, time deposits, and other bank obligations; and asset-backed securities as disclosed on the “Schedules of investments.” Securities purchased with cash collateral are valued at the market value. A fund can also accept US government securities and letters of credit(non-cash collateral) in connection with securities loans.
In the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Funds or, at the discretion of the lending agent, replace the loaned securities. The Funds continue to record dividends or interest, as applicable, on the securities loaned and is subject to changes in value of the securities loaned that may occur during the term of the loan. The Funds have
Notes to financial statements
Optimum Fund Trust
9. Securities Lending (continued)
the right under the Lending Agreement to recover the securities from the borrower on demand. With respect to security loans collateralized bynon-cash collateral, the Funds receive loan premiums paid by the borrower. With respect to security loans collateralized by cash collateral, the earnings from the collateral investments are shared among the Funds, the security lending agent, and the borrower. The Funds record security lending income net of allocations to the security lending agent and the borrower.
Each Fund may incur investment losses as a result of investing securities lending collateral. This could occur if an investment in the collateral investment account defaulted or became impaired. Under those circumstances, the value of a Fund’s cash collateral account may be less than the amount a Fund would be required to return to the borrowers of the securities and that Fund would be required to make up for this shortfall.
During the year ended March 31, 2019, Optimum Fixed Income Fund, Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, OptimumSmall-Mid Cap Growth Fund, and OptimumSmall-Mid Cap Value Fund had no securities on loan.
The following table reflects a breakdown of transactions in securities lending collateral accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of March 31, 2019 for Optimum International Fund:
| | | | | | | | | | | | | | | | | | | | | | | | | |
Securities Lending Transactions | | Overnight
and
Continuous | | Under
30 days | | Between
30 & 90 days | | Over
90 days | | Total |
| | | | | |
Certificates of Deposit, Repurchase Agreements, and Short-Term Floating Rate Notes | | | $ | 8,258,807 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | 8,258,807 | |
At March 31, 2019, the value of securities on loan for Optimum International Fund was $9,242,284, for which the Fund received cash collateral of $8,242,395 andnon-cash collateral with a fair value of $1,224,809. At March 31, 2019, the value of invested collateral was $8,258,807. Investments purchased with cash collateral are presented on the “Schedules of investments” under the caption “Securities Lending Collateral.”
10. Credit and Market Risk
Some countries in which the Funds may invest require governmental approval for the repatriation of investment income, capital, or the proceeds of sales of securities by foreign investors. In addition, if there is deterioration in a country’s balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad.
The securities exchanges of certain foreign markets are substantially smaller, less liquid and more volatile than the major securities markets in the United States. Consequently, acquisition and disposition of securities by the Funds may be inhibited. In addition, a significant portion of the aggregate market value of securities listed on the major securities exchanges in emerging markets is held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by the Funds.
When interest rates rise, fixed income securities (i.e. debt obligations) generally will decline in value. These declines in value are greater for fixed income securities with longer maturities or durations.
Optimum Fixed Income Fund invests in high yield fixed income securities, which are securities rated lower than BBB by S&P and lower than Baa3 by Moody’s, or similarly rated by another nationally recognized statistical rating organization. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.
Optimum Fixed Income Fund invests in bank loans and other securities that may subject it to direct indebtedness risk, the risk that the Fund will not receive payment of principal, interest and other amounts due in connection with these investments and will depend primarily on the financial condition of the borrower. Loans that are fully secured offer the Fund more protection than unsecured loans in the event of nonpayment of scheduled interest or principal, although there is no assurance that the liquidation of collateral from a secured loan would satisfy the corporate borrower’s obligation, or that the collateral can be liquidated. Some loans or claims may be in default at the time of purchase. Certain of the loans and the other direct indebtedness acquired by the Fund may involve revolving credit facilities or other standby financing commitments that obligate the Fund to pay additional cash on a certain date or on demand. These commitments may require the Fund to increase its investment in a company at a time when the Fund might not otherwise decide to do so (including at a time when the company’s financial condition makes it unlikely that such amounts will be repaid). To the extent that the Fund is committed to advance
170
additional funds, it will at all times hold and maintain cash or other high grade debt obligations in an amount sufficient to meet such commitments. When a loan agreement is purchased, the Fund may pay an assignment fee. On an ongoing basis, the Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan agreement. Prepayment penalty fees are received upon the prepayment of a loan agreement by the borrower. Prepayment penalty, facility, commitment, consent, and amendment fees are recorded to income as earned or paid. As the Fund may be required to rely upon another lending institution to collect and pass on to the Fund amounts payable with respect to the loan and to enforce the Fund’s rights under the loan and other direct indebtedness, an insolvency, bankruptcy, or reorganization of the lending institution may delay or prevent the Fund from receiving such amounts. The highly leveraged nature of many loans may make them especially vulnerable to adverse changes in economic or market conditions. Investments in such loans and other direct indebtedness may involve additional risk to the Fund.
Optimum Fixed Income Fund invests in certain obligations that may have liquidity protection designed to ensure that the receipt of payments due on the underlying security is timely. Such protection may be provided through guarantees, insurance policies, or letters of credit obtained by the issuer or sponsor through third parties, through various means of structuring the transaction or through a combination of such approaches. The Fund will not pay any additional fees for such credit support, although the existence of credit support may increase the price of a security.
Optimum Fixed Income Fund invests in fixed income securities whose value is derived from an underlying pool of mortgages or consumer loans. The value of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates. Investors receive principal and interest payments as the underlying mortgages and consumer loans are paid back. Some of these securities are collateralized mortgage obligations (CMOs). CMOs are debt securities issued by US government agencies or by financial institutions and other mortgage lenders, which are collateralized by a pool of mortgages held under an indenture. Prepayment of mortgages may shorten the stated maturity of the obligations and can result in a loss of premium, if any has been paid. Certain of these securities may be stripped (securities which provide only the principal or interest feature of the underlying security). The yield to maturity on an interest-only CMO is extremely sensitive not only to changes in prevailing interest rates, but also to the rate of principal payments (including prepayments) on the related underlying mortgage assets. A rapid rate of principal payments may have a material adverse effect on the Fund’s yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Fund may fail to fully recoup its initial investment in these securities even if the securities are rated in the highest rating categories.
OptimumSmall-Mid Cap Growth Fund and OptimumSmall-Mid Cap Value Fund invest a significant portion of their assets in small- andmid-sized companies. Investments in small- andmid-sized companies may be more volatile than investments in larger companies for a number of reasons, which include more limited financial resources or a dependence on narrow product lines.
Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, OptimumSmall-Mid Cap Growth Fund, and OptimumSmall-Mid Cap Value Fund may invest in REITs and are subject to the risks associated with that industry. If a Fund holds real estate directly as a result of defaults or receives rental income directly from real estate holdings, its tax status as a regulated investment company may be jeopardized. There were no direct real estate holdings during the year ended March 31, 2019. The Funds’ REIT holdings are also affected by interest rate changes, particularly if the REITs they hold use floating rate debt to finance their ongoing operations. The Funds also invests in real estate acquired as a result of ownership of securities or other instruments, including issuers that invest, deal, or otherwise engage in transactions in real estate or interests therein. These instruments may include interests in private equity limited partnerships or limited liability companies that hold real estate investments (Real Estate Limited Partnerships). The Funds will limit their investments in Real Estate Limited Partnerships to 5% of their total assets at the time of purchase.
Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, and OptimumSmall-Mid Cap Growth Fund invested in growth stocks (such as those in the technology sector), which reflect projections of future earnings and revenue. These prices may rise or fall dramatically depending on whether those projections are met. These companies’ stock prices may be more volatile, particularly over the short-term.
Each Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A promulgated under the Securities Act of 1933, as amended (1933 Act), and other securities which may not be readily marketable. The Funds may also invest in securities exempt from registration under Section 4(a)(2) of the 1933 Act, which exempts from registration transactions by an issuer not involving any public offering. The relative illiquidity of these securities may impair the Funds from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, the Trust’s Board has delegated to DMC, theday-to-day functions of determining whether individual securities are liquid for purposes of the Funds’ limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are
Notes to financial statements
Optimum Fund Trust
10. Credit and Market Risk (continued)
not subject to the Funds’ 15% limit on investments in illiquid securities. Rule 144A, 4(a)(2) and restricted securities have been identified on the “Schedules of investments.” Restricted securities are valued pursuant to the security valuation procedures described in Note 1.
11. Contractual Obligations
Each Fund enters into contracts in the normal course of business that contain a variety of indemnifications. Each Fund’s maximum exposure under these arrangements is unknown. However, each Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Funds’ existing contracts and expects the risk of loss to be remote.
12. General Motors Term Loan Litigation
Optimum Fixed Income Fund received notice of a litigation proceeding related to a General Motors Corporation (G.M.) term loan participation previously held by the Fund in 2009. Because it was believed that the Fund was a secured creditor, the Fund received the full principal on the loans in 2009 after the G.M. bankruptcy. However, based upon a US Court of Appeals ruling, the Motors Liquidation Company Avoidance Action Trust is seeking to recover such amounts arguing that the Fund is an unsecured creditor and, as an unsecured creditor, the Fund should not have received payment in full. Based upon available information related to the litigation and the Fund’s potential exposure, the Fund recorded a contingent liability of $1,385,788 and an asset of $415,736 based on the potential recoveries by the estate that resulted in a net decrease in the Fund’s NAV to reflect this potential recovery.
13. Recent Accounting Pronouncements
In March 2017, the FASB issued an Accounting Standards Update (ASU), ASU2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain callable debt securities purchased at a premium, shortening such period to the earliest call date. The ASU2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. The ASU2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.
In August 2018, the FASB issued an ASU2018-13, which changes certain fair value measurement disclosure requirements. ASU2018-13, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for the timing of transfers between levels and the valuation process for Level 3 fair value measurements. ASU2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2019. At this time, management is evaluating the implications of these changes on the financial statements.
In August 2018, the Securities and Exchange Commission (SEC) adopted amendments to RegulationS-X to update and simplify the disclosure requirements for registered investment companies by eliminating requirements that are redundant or duplicative of US GAAP requirements or other SEC disclosure requirements. The new amendments require the presentation of the total, rather than the components, of distributable earnings on the “Statements of assets and liabilities” and the total, rather than the components, of dividends from net investment income and distributions from net realized gains on the “Statements of changes in net assets.” The amendments also removed the requirement for the parenthetical disclosure of undistributed net investment income on the “Statements of changes in net assets” and certain tax adjustments that were reflected in the “Notes to financial statements.” All of these have been reflected in the Funds’ financial statements.
14. Subsequent Events
Management has determined that no material events or transactions occurred subsequent to March 31, 2019, that would require recognition or disclosure in the Funds’ financial statements.
172
Report of independent
registered public accounting firm
To the Board of Trustees of Optimum Fund Trust and Shareholders of Optimum Fixed Income Fund, Optimum International Fund, Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, OptimumSmall-Mid Cap Growth Fund and OptimumSmall-Mid Cap Value Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Optimum Fixed Income Fund, Optimum International Fund, Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, OptimumSmall-Mid Cap Growth Fund and OptimumSmall-Mid Cap Value Fund (constituting Optimum Fund Trust, hereafter collectively referred to as the “Funds”) as of March 31, 2019, the related statements of operations for the year ended March 31, 2019, the statements of changes in net assets for each of the two years in the period ended March 31, 2019, including the related notes, and the financial highlights for each of the five years in the period ended March 31, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2019, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2019 and each of the financial highlights for each of the five years in the period ended March 31, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
May 21, 2019
We have served as the auditor of one or more investment companies in Optimum Fund Trust since 2010.
173
Other Fund information
(Unaudited)
Optimum Fund Trust
Tax Information
The information set forth below is for each Fund’s fiscal year as required by federal income tax laws. Shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal years of the Funds. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in January of each year. Please consult your tax advisor for proper treatment of this information.
All disclosures are based on financial information available as of the date of this annual report and, accordingly are subject to change. For any and all items requiring reporting, it is the intention of the Funds to report the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.
For the fiscal year ended March 31, 2019, each Fund reports distributions paid during the year as follows:
| | | | | | | | | | | | | | | | |
| | | (A) | | | (B) | | | | | | | |
| | | Long-Term | | | Ordinary | | | | | | | |
| | | Capital Gains | | | Income | | | Total | | | (C) | |
| | | Distributions | | | Distributions* | | | Distributions | | | Qualifying | |
| | | (Tax Basis) | | | (Tax Basis) | | | (Tax Basis) | | | Dividends1 | |
Optimum Fixed Income Fund | | | — | | | | 100.00% | | | | 100.00% | | | | — | |
Optimum International Fund | | | 72.19% | | | | 27.81% | | | | 100.00% | | | | — | |
Optimum Large Cap Growth Fund | | | 92.38% | | | | 7.62% | | | | 100.00% | | | | 28.80% | |
Optimum Large Cap Value Fund | | | 64.70% | | | | 35.30% | | | | 100.00% | | | | 100.00% | |
OptimumSmall-Mid Cap Growth Fund | | | 89.23% | | | | 10.77% | | | | 100.00% | | | | — | |
OptimumSmall-Mid Cap Value Fund | | | 85.13% | | | | 14.87% | | | | 100.00% | | | | 100.00% | |
(A) and (B) are based on a percentage of each Fund’s total distributions.
(C) is based on a percentage of each Fund’s ordinary income distributions.
1Qualifying dividends represent dividends which qualify for the corporate dividends received deduction.
*For the fiscal year ended March 31, 2019, certain dividends paid by the Funds may be subject to a maximum tax rate of 20%. The percentage of dividends paid by the Funds from ordinary income reported as qualified income are as reported in the following table. Complete information will be computed and reported in conjunction with your 2019 Form1099-DIV.
| | | | | | | | | | | | |
| | | Optimum | | Optimum | | Optimum | | Optimum | | Optimum | | Optimum |
| | | Fixed Income | | International | | Large Cap | | Large Cap | | Small-Mid Cap | | Small-Mid Cap |
| | | Fund | | Fund | | Growth Fund | | Value Fund | | Growth Fund | | Value Fund |
| | — | | 100.00% | | 31.32% | | 100.00% | | — | | 100.00% |
For the fiscal year ended March 31, 2019, certain interest income paid by the Funds, determined to be Qualified Interest Income or Qualified Short-Term Capital Gains may be subject to relief from US tax withholding for foreign shareholders, as provided by the American Jobs Creation Act of 2004; the Tax Relief Unemployment Insurance Reauthorization, and Job Creations Act of 2010; and as extended by the American Taxpayer Relief Act of 2012. For the fiscal year ended March 31, 2019, the Funds have reported maximum distributions of Qualified Interest Income and Qualified Short-Term Capital Gains as follows:
| | | | | | |
| | | Qualified
Interest Income | | Short-Term
Capital Gain | |
Optimum Large Cap Growth Fund | | — | | | 1,317,028 | |
OptimumSmall-Mid Cap Growth Fund | | — | | | 21,444 | |
Optimum International Fund intends to pass through foreign tax credits in the maximum amount of $1,013,857. The gross foreign source income earned during the fiscal year 2019 by the Fund was $17,087,590.
Board Consideration of Optimum Fixed Income FundSub-Advisory Agreement at a Meeting Held December13-14, 2018
At a meeting held on Dec.13-14, 2018, the Board of Trustees of Optimum Fund Trust, including a majority ofnon-interested or independent Trustees (the “Independent Trustees”), approved a newSub-Advisory Agreement between Delaware Management Company (“DMC” or “Management”) and Macquarie Investment Management Austria Kapitalanlage (“MIMAK” or“Sub-Advisor”) for Optimum Fixed Income Fund (the “Fund” or “Fixed Income Fund”). MIMAK is an affiliate of DMC.
In reaching the decision to approve theSub-Advisory Agreement, the Board considered and reviewed information about MIMAK, including its personnel, operations and financial condition, which had been provided by MIMAK. The Board also reviewed material furnished by DMC, including: a memorandum from DMC reviewing theSub-Advisory Agreement and the various services proposed to be rendered by MIMAK; information concerning MIMAK’s organizational structure and the experience of their key investment management personnel; copies of MIMAK’s Form ADV, financial statements, compliance policies and procedures, and Code of Ethics; relevant performance information provided with respect to MIMAK; and a copy of theSub-Advisory Agreement.
In considering such information and materials, the Independent Trustees received assistance and advice from and met separately with independent counsel. The materials prepared by Management in connection with the approval of theSub-Advisory Agreement were sent to the Independent Trustees in advance of the meeting. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s decision. This discussion of the information and factors considered by the Board (as well as the discussion above) is not intended to be exhaustive, but rather summarizes certain factors considered by the Board. In view of the wide variety of factors considered, the Board did not, unless otherwise noted, find it practicable to quantify or otherwise assign relative weights to the following factors. In addition, individual Trustees may have assigned different weights to various factors.
Nature, extent, and quality of services.In considering the nature, extent and quality of the services to be provided by theSub-Advisor, the Board reviewed the services to be provided by theSub-Advisor pursuant to theSub-Advisory Agreement and as described at the meeting. The Board reviewed materials provided by theSub-Advisor regarding the experience and qualifications of the personnel who will be responsible for providing services to a portion of the Fixed Income Fund. The Board also considered relevant performance information provided with respect to theSub-Advisor. In discussing the nature of the services proposed to be provided by theSub-Advisor, it was observed that, unlike traditionalsub-advisors who make the investment related decisions with respect to asub-advised portfolio, the relationship between DMC (the Fund’s investment manager) and theSub-Advisor as currently contemplated is more of a collaborative effort between DMC and theSub-Advisor and a cross-pollination of investment ideas. Moreover, the Board noted the stated intention that DMC retain the final decision-making authority with respect to purchases and sales of securities in the Fixed Income Fund. Based upon these considerations, the Board was satisfied with the nature and quality of the overall services to be provided by theSub-Advisor to the Fund and its shareholders and was confident in the abilities of theSub-Advisor to provide quality services to the Fund and its shareholders.
Investment performance.In regards to the appointment of theSub-Advisor for the Fixed Income Fund, the Board reviewed information on prior performance for theSub-Advisor. In evaluating performance, the Board considered that theSub-Advisor would provide investment advice and recommendations, including with respect to specific securities, for consideration and evaluation by DMC’s portfolio managers, but that DMC’s portfolio managers for the Fund would retain final portfolio management discretion.
Sub-advisory fees.The Board considered that DMC would not pay theSub-Advisor any fees in conjunction with the services that would be rendered to the Fixed Income Fund. The Board concluded that, in light of the quality and extent of the services to be provided and the business relationships between DMC and theSub-Advisor, the proposed fee arrangement was understandable and appropriate.
Profitability, economies of scale and fall out benefits.Information about theSub-Advisor’s profitability from its relationship with the Fixed Income Fund was not available because it had not begun to provide services to the Fund. It was also noted that theSub-Advisor would be receiving no fees in connection with its services under theSub-Advisory Agreement. With regard to potentialfall-out benefits derived or to be derived by theSub-Advisor and its affiliates in connection with their relationship to the Fund, the Board considered the potential benefit to DMC and theSub-Advisor of marketing a global approach on the portfolio management of their fixed income investment strategies. The Trustees also noted that economies of scale are shared with the Fixed Income Fund and its shareholders through investment management fee breakpoints in DMC’s fee schedule for the Fixed Income Fund so that as the Fund grows in size, its effective investment management fee rate declines.
Other Fund information
(Unaudited)
Optimum Fund Trust
Board Consideration of Optimum Fixed Income FundSub-Advisory Agreements at a Meeting Held March27-28, 2019
At a meeting held on March27-28, 2019, the Board of Trustees of Optimum Fund Trust, including a majority ofnon-interested or independent Trustees (the “Independent Trustees”), approved a new Sub Advisory Agreement between Delaware Management Company (“DMC” or “Management”) and each of Macquarie Investment Management Europe Limited (“MIMEL”), Macquarie Investment Management Austria Kapitalanlage (“MIMAK”), and Macquarie Investment Management Global Limited (“MIMGL”) for Optimum Fixed Income Fund (the “Fund” or “Fixed Income Fund”). MIMEL, MIMAK and MIMGL may also be referenced as a“Sub-Advisor” or“Sub-Advisor(s)” below. EachSub-Advisor is an affiliate of DMC.
In reaching the decision to approve theSub-Advisory Agreements, the Board considered and reviewed information about each of MIMEL, MIMAK and MIMGL, including its personnel, operations and financial condition, which had been provided by MIMEL, MIMAK and MIMGL, respectively. The Board also reviewed material furnished by DMC in advance of the meeting, including: a memorandum from DMC reviewing theSub-Advisory Agreements and the various services proposed to be rendered by MIMEL, MIMAK and MIMGL; information concerning MIMEL’s, MIMAK’s and MIMGL’s organizational structure and the experience of their key investment management personnel; copies of MIMEL’s, MIMAK’s and MIMGL’s Form ADV, financial statements, compliance policies and procedures, and Codes of Ethics; relevant performance information provided with respect to MIMEL, MIMAK and MIMGL; and a copy of theSub-Advisory Agreements.
In considering such information and materials, the Independent Trustees received assistance and advice from and met separately with their independent counsel. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s decision to approve theSub-Advisory Agreements. This discussion of the information and factors considered by the Board (as well as the discussion above) is not intended to be exhaustive, but rather summarizes certain factors considered by the Board. In view of the wide variety of factors considered, the Board did not, unless otherwise noted, find it practicable to quantify or otherwise assign relative weights to the following factors. In addition, individual Trustees may have assigned different weights to various factors.
Nature, extent, and quality of services.In considering the nature, extent and quality of the services to be provided by theSub-Advisors, the Board reviewed the services to be provided by eachSub-Advisor pursuant to eachSub-Advisory Agreement and as described at the meeting. The Board reviewed materials provided by theSub-Advisors regarding the experience and qualifications of the personnel who will be responsible for providing services to a portion of the Fixed Income Fund. The Board also considered relevant performance information provided with respect to eachSub-Advisor. In discussing the nature of the services proposed to be provided by theSub-Advisors, it was observed that, unlike traditionalsub-advisors who make all of the investment related decisions with respect to asub-advised portfolio, the relationship between DMC (the Fund’s investment manager) and theSub-Advisors as currently contemplated is primarily more of a collaborative effort between DMC and theSub-Advisors and a cross pollination of investment ideas. The Board further noted the stated intention under the newSub-Advisory Agreements that DMC would have the sole discretion to delegate portions of the implementation of the Fund’s strategy with respect to the portion of the portfolio managed by DMC to theSub-Advisors who would be permitted to execute Fund trades and exercise investment discretion pursuant to that delegation and subject to DMC oversight. However, DMC and the Fund’s named portfolio managers will continue to retain principal responsibility for the Fund’s strategy and investment process and be primarily responsible for theday-to-day management of DMC’s portion of the Fund’s portfolio. Based upon these considerations, the Board was satisfied with the nature and quality of the overall services to be provided by theSub-Advisors to the Fund and its shareholders and was confident in the abilities of theSub-Advisors to provide quality services to the Fund and its shareholders.
Investment performance.In regards to the appointment of theSub-Advisors for the Fixed Income Fund, the Board reviewed information on prior performance for theSub-Advisors. In evaluating performance, the Board considered that theSub-Advisors would provide investment advice and recommendations, including with respect to specific securities, but that DMC’s portfolio managers for the Fund would retain principal responsibility for the Fund’s strategy as described above. In addition, the Board considered that theSub-Advisors would also execute Fund security trades on behalf of DMC and be permitted by DMC to exercise investment discretion for securities in certain markets where DMC wanted to utilize aSub-Advisor’s specialized market knowledge.
Sub-advisory fees.The Board considered that DMC would pay theSub-Advisors asub-advisory fee based on the extent to which aSub-Advisor provides services to the Fund as described in theSub-Advisory Agreements. In considering the appropriateness of thesub-advisory fees, the Board also reviewed and considered the fees in light of the nature, extent and quality of thesub-advisory services to be provided by eachSub-Advisor, as more fully discussed above. The Board noted that thesub-advisory fees are paid by DMC to eachSub-Advisor and are not additional fees borne by the Fund, and that the management fee paid by the Fund to DMC would stay the same at current asset levels. The Board was provided with information showing an estimate of thesub-advisory fees to be paid to eachSub-Advisor based on a projection of
Sub-Advisor allocations given certain historical investment trends, as well as information regarding the expected impact thesub-advisory arrangements would have on the profitability of DMC. The Board also noted that, given the collaborative nature of the services to be provided by theSub-Advisors to the Fund, there were no comparable accounts and corresponding fees to which theSub-Advisors were able to compare this arrangement. The Board concluded that, in light of the quality and extent of the services to be provided and the business relationships between DMC and theSub-Advisors, the proposed fee arrangement was understandable and reasonable.
Profitability, economies of scale and fall out benefits.Information about eachSub-Advisor’s profitability from its relationship with the Fixed Income Fund was not available because it had not begun to provide services to the Fund. With regard to potentialfall-out benefits derived or to be derived by theSub-Advisors and their affiliates in connection with their relationship to the Fund, the Board considered the potential benefit to DMC and theSub-Advisors of marketing a global approach on the portfolio management of their fixed income investment strategies. The Trustees also noted that economies of scale are shared with the Fixed Income Fund and its shareholders through investment management fee breakpoints in DMC’s fee schedule for the Fixed Income Fund so that as the Fund grows in size, its effective investment management fee rate declines.
Board of trustees and officers addendum
Optimum Fund Trust
A mutual fund is governed by a Board of Trustees, which has oversight responsibility for the management of a fund’s business affairs. Trustees establish procedures and oversee and review the performance of the investment manager, the distributor and others that perform services for the fund. The independent fund trustees, in particular, are advocates for shareholder interests. The following is a list of the Trustees and Officers of the Trust with certain background and related information.
| | | | | | | | | | |
Name, Address, and Birth Date | | Position(s) Held with Fund(s) | | Length of Time
Served | | Principal Occupation(s) During Past 5 Years | | Number of
Portfolios in Fund
Complex1Overseen
by Trustee or Officer | | Other Directorships Held by Trustee or Officer |
INTERESTED TRUSTEES |
Brett W. Wright2 2005Market Street Philadelphia, PA 19103 February 1970 | | Trustee, President, and Chief Executive Officer | | Since March 29, 2019 | | Co-Head of Client Group — Macquarie Investment Management3 (2016-Present) Head of Third-Party Distribution — Macquarie Investment Management3 (2014-2016) Western Division Sales Manager — Delaware Investments (2011-2014) | | 6 | | None |
Matt Audette2 2005 Market Street Philadelphia, PA 19103 May 1974 | | Trustee | | Since Dec.16, 2016 | | Chief Financial Officer and Managing Director — LPL Financial LLC (2015-Present) Chief Financial Officer — E*TRADE Financial Corporation (2011-2015) | | 6 | | None |
INDEPENDENT TRUSTEES |
Robert J. Christian2005 Market StreetPhiladelphia, PA 19103 February 1949 | | Chairman and Trustee | | Chairman since March 19, 2009 Trustee since Nov. 1, 2007 | | Private Investor (2006-Present) | | 6 | | Trustee — FundVantage Trust (34 mutual funds) (2007-Present) |
Durant Adams Hunter2005 Market Street Philadelphia, PA 19103 November 1948 | | Trustee | | Since July 17, 2003 | | Managing Partner — Ridgeway Partners (Executive recruiting) (2004-Present) | | 6 | | None |
Pamela J. Moret 2005 Market Street Philadelphia, PA 19103 February 1956 | | Trustee | | Since Oct. 1, 2013 | | Private Investor (2015–Present) Chief Executive Officer — brightpeak financial (2011-2015) Senior Vice President — Thrivent Financial for Lutherans (2002-2015) | | 6 | | Director — Blue Cross Blue Shield of Minnesota (2014-Present) |
Stephen P. Mullin
2005 Market Street Philadelphia, PA 19103 February 1956 | | Trustee | | Since July 17, 2003 | | President — Econsult Solutions, Inc. (2013-Present) Senior Vice President — Econsult Corp. (Economic consulting) (2000-2012) | | 6 | | None |
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| | | | | | | | | | |
Name, Address, and Birth Date | | Position(s) Held with Fund(s) | | Length of Time
Served | | Principal Occupation(s) During Past 5 Years | | Number of
Portfolios in Fund
Complex1Overseen
by Trustee or Officer | | Other Directorships Held by Trustee or Officer |
INDEPENDENT TRUSTEES (continued) |
Robert A. Rudell2005 Market Street Philadelphia, PA 19103 September 1948 | | Trustee | | Since July 17, 2003 | | Private Investor (2002-Present) | | 6 | | Director and Independent Chairman — Heartland Funds (4 mutual funds) (2005-Present) |
| | | | | |
Jon Socolofsky 2005 Market Street Philadelphia, PA 19103 March 1946 | | Trustee | | Since July 17, 2003 | | President — H&S Enterprises of Minocqua, LLC (Commercial real estate developer) (2005-Present) Private Investor (2002-Present) | | 6 | | None |
| | | | | |
Susan M. Stalnecker 2005 Market Street Philadelphia, PA 19103 January 1953 | | Trustee | | Since Dec. 14, 2016 | | Senior Advisor — Boston Consulting Group (2016-Present) Vice President — Productivity & Shared Services — E.I. du Pont de Nemours and Company (2012-2016) Vice President and Treasurer — E.I. du Pont de Nemours and Company (2006-2012) | | 6 | | Trustee —Duke University Health System, Audit Committee member (2010-Present) Director — Leidos (2016-Present) Director — Bioventus (2018-present) |
OFFICERS |
| | | | | |
David F. Connor 2005 Market Street Philadelphia, PA 19103 December 1963 | | Senior Vice President, General Counsel, and Secretary | | Senior Vice President since May 2013; General Counsel since May 2015; Secretary since October 2005 | | David F. Connor has served in various capacities at different times at Macquarie Investment Management3. | | 6 | | None4 |
| | | | | |
Daniel V. Geatens2005 Market Street Philadelphia, PA 19103 October 1972 | | Vice President and Treasurer | | Since Sept. 20, 2007 | | Daniel V. Geatens has served in various capacities at different times at Macquarie Investment Management3. | | 6 | | None4 |
| | | | | |
Richard Salus 2005 Market Street Philadelphia, PA 19103 October 1963 | | Senior Vice President and Chief Financial Officer | | Since Jan. 1, 2006 | | Richard Salus has served in various capacities at different times at Macquarie Investment Management3. | | 6 | | None4 |
| 1 | The term “Fund Complex” refers to the Funds in the Optimum Fund Trust. |
| 2 | “Interested persons” of the Funds by virtue of their executive and management positions or relationships with the Fund’s service providers orsub-service providers. |
| 3 | Macquarie Investment Management is the marketing name for Macquarie Management Holdings, Inc. and its subsidiaries, including the Fund’s(s’) investment advisor, principal underwriter, and its transfer agent. Mr. Geatens also serves as the Chief Financial Officer and Treasurer for Macquarie Global Infrastructure Total Return Fund Inc., which has an affiliated investment manager. |
| 4 | Messr. Connor, Geatens, and Salus also serve in similar capacities for the Delaware Funds® by Macquarie, a fund complex that has the same manager, principal underwriter, and transfer agent as the Trust. |
The Statement of Additional Information for the Funds includes additional information about the Trustees and Officers and is available, without charge, upon request by calling your financial advisor or 800914-0278.
About the organization
This annual report is for the information of Optimum Fund Trust shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Optimum Fund Trust and the fact sheet for the most recently completed calendar quarter. The prospectus sets forth details about charges, expenses, investment objectives, and operating policies of the investment company. You should read the prospectus carefully before you invest. The figures in this report represent past results that are not a guarantee of future results. The return and principal value of an investment in the investment company will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.
| | | | |
Board of trustees Matt Audette Chief Financial Officer and Managing Director — LPL Financial LLC Brett Wright Co-Head of Client Group — Macquarie Investment Management Robert J. Christian Private Investor Durant Adams Hunter Managing Partner — Ridgeway Partners Pamela J. Moret Private Investor Stephen P. Mullin President — Econsult Solutions, Inc. Robert A. Rudell Private Investor Jon Socolofsky Private Investor Susan M. Stalnecker Senior Advisor — Boston Consulting Group | | Affiliated officers David F. Connor Senior Vice President, General Counsel, and Secretary Optimum Fund Trust Philadelphia, PA Daniel V. Geatens Vice President and Treasurer Optimum Fund Trust Philadelphia, PA Richard Salus Senior Vice President and Chief Financial Officer Optimum Fund Trust Philadelphia, PA | | Contact information Investment manager Delaware Management Company, a series of Macquarie Investment Management Business Trust, Philadelphia, PA National distributor Delaware Distributors, L.P. Philadelphia, PA Shareholder servicing, dividend disbursing, and transfer agent Delaware Investments Fund Services Company 2005 Market Street Philadelphia, PA 19103-7094 For shareholders, securities dealers and financial institutions representatives only 800914-0278 Website optimummutualfunds.com |
| | Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on FormN-Q or FormN-PORT (available for filings after March 31, 2019). Each Fund’s FormsN-Q or FormsN-PORT, as well as a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities, are available without charge (i) upon request, by calling 800523-1918; and (ii) on the SEC’s website at sec.gov. In addition, a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities and the Schedule of Investments included in the Funds’ most recent FormN-Q or FormN-PORT are available without charge on the Funds’ website at optimummutualfunds.com/literature. Each Fund’s FormsN-Q and FormsN-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling 800SEC-0330. Information (if any) regarding how the Funds voted proxies relating to portfolio securities during the most recently disclosed12-month period ended June 30 is available without charge (i) through the Funds’ website at optimummutualfunds.com/proxy; and (ii) on the SEC’s website at sec.gov. |
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Item 2. Code of Ethics
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. A copy of the registrant’s Code of Business Ethics has been posted on the Optimum Mutual Funds’ Internet Web site at www.optimummutualfunds.com. Any amendments to the Code of Business Ethics, and information on any waiver from its provisions granted by the registrant, will also be posted on this Web site within five business days of such amendment or waiver and will remain on the Web site for at least 12 months.
Item 3. Audit Committee Financial Expert
The registrant’s Board of Trustees/Directors has determined that certain members of the registrant’s Audit Committee are audit committee financial experts, as defined below. For purposes of this item, an “audit committee financial expert” is a person who has the following attributes:
a. An understanding of generally accepted accounting principles and financial statements;
b. The ability to assess the general application of such principles in connection with the accounting for estimates, accruals, and reserves;
c. Experience preparing, auditing, analyzing, or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements, or experience actively supervising one or more persons engaged in such activities;
d. An understanding of internal controls and procedures for financial reporting; and
e. An understanding of audit committee functions.
An “audit committee financial expert” shall have acquired such attributes through:
a. Education and experience as a principal financial officer, principal accounting officer, controller, public accountant, or auditor or experience in one or more positions that involve the performance of similar functions;
b. Experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor, or person performing similar functions;
c. Experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing, or evaluation of financial statements; or
d. Other relevant experience.
The registrant’s Board of Trustees/Directors has also determined that each member of the registrant’s Audit Committee is independent. In order to be “independent” for purposes of this item, the Audit Committee member may not: (i) other than in his or her capacity as a member of the Board of Trustees/Directors or any committee thereof, accept directly or indirectly any consulting, advisory or other compensatory fee from the issuer; or (ii) be an “interested person” of the registrant as defined in Section 2(a)(19) of the Investment Company Act of 1940.
The names of the audit committee financial experts on the registrant’s Audit Committee are set forth below:
Item 4. Principal Accountant Fees and Services
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $156,050 for the fiscal year ended March 31, 2019.
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $153,000 for the fiscal year ended March 31, 2018.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended March 31, 2019.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended March 31, 2018.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended March 31, 2019.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended March 31, 2018.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended March 31, 2019.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended March 31, 2018.
(e) The registrant’s Audit Committee has established pre-approval policies and procedures as permitted by Rule 2-01(c)(7)(i)(B) of Regulation S-X (the “Pre-Approval Policy”) with respect to services provided by the registrant’s independent auditors. Pursuant to the Pre-Approval Policy, the Audit Committee has pre-approved the services set forth in the table below with respect to the registrant up to the specified fee limits. Certain fee limits are based on aggregate fees to the registrant and other registrants within the Optimum Fund Trust.
Under the Pre-Approval Policy, the Audit Committee has also pre-approved the services set forth in the table below with respect to the registrant’s investment adviser and other entities controlling, controlled by or under common control with the investment adviser that provide ongoing services to the registrant (the “Control Affiliates”) up to the specified fee limit. This fee limit is based on aggregate fees to the investment adviser and its Control Affiliates.
The Pre-Approval Policy requires the registrant’s independent auditors to report to the Audit Committee at each of its regular meetings regarding all services initiated since the last such report was rendered, including those services authorized by the Pre-Approval Policy.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the registrant’s independent auditors for services rendered to the registrant and to its investment adviser and other service providers under common control with the adviser were $11,748,000 and $11,748,000 for the registrant’s fiscal years ended March 31, 2019 and March 31, 2018, respectively.
(h) In connection with its selection of the independent auditors, the registrant’s Audit Committee has considered the independent auditors’ provision of non-audit services to the registrant’s investment adviser and other service providers under common control with the adviser that were not required to be pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X. The Audit Committee has determined that the independent auditors’ provision of these services is compatible with maintaining the auditors’ independence.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.
(b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. Controls and Procedures
The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 180 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
There were no significant changes in the registrant’s internal control over financial reporting that occurred during the semiannual period covered by the report to stockholders included herein that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Item 13. Exhibits
Not applicable.
(2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as Exhibit 99.CERT.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
Not applicable.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
